CHAPTER 59. REGIONAL DISTRICTS
WATER CODE
TITLE 4. GENERAL LAW DISTRICTS
CHAPTER 59. REGIONAL DISTRICTS
SUBCHAPTER A. DISTRICT CREATION
Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of this
chapter is to authorize creation and operation of regional
districts for water, sanitary sewer, drainage, and municipal
solid waste disposal under Section 59, Article XVI, Texas
Constitution.
(b) This chapter applies only in counties with a population of
at least 3.3 million or bordering a county with a population of
at least 3.3 million.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 149, eff.
Sept. 1, 2001.
Sec. 59.002. DEFINITIONS. (a) In this chapter:
(1) "District" means a district created or operating under this
chapter.
(2) "Municipal district" means a district created under general
law or a special Act operating under Chapter 51, 53, or 54.
(3) "Bond" means bonds, coupons, notes, or any other evidence of
indebtedness.
(b) Other terms not defined by this chapter have the same
meaning assigned to those terms by Section 49.001.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.003. CREATION OF DISTRICT. (a) A district may be
created by:
(1) The boards of at least 20 percent of the total number of
municipal districts to be included in the proposed district may
jointly petition the commission for creation of a district. The
petition must describe the territory to be included in the
district and must include resolutions endorsing creation of the
district adopted by each municipal district to be included in the
district.
(2) The owner or owners of 2,000 or more contiguous acres may
petition the commission for creation of a district.
(3) The commissioners courts of one or more counties may
petition the commission for creation of a district in any
territory within the county.
(4) The governing body of any city may petition the commission
for creation of a district in any territory within the city or
its extraterritorial jurisdiction.
(b) Petitions for the creation of a district must:
(1) describe the boundaries of the proposed district by metes
and bounds that adequately and completely circumscribe the
property so that there is complete closure of the property or by
lot and block numbers if there is a recorded map or plat or
subdivision survey of the area;
(2) state the general nature of the work proposed to be done,
the necessity of the work, and the cost of any projects of the
district as estimated by those filing the petition;
(3) state the name of each petitioner; and
(4) include a name of the district generally descriptive of the
locale of the district followed by the words "Regional District."
(c) A proposed district may not have the same name as any other
district in the state.
(d) Section 54.013 applies to the composition of districts
created under this chapter.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.004. PURPOSES OF DISTRICT. A district shall be created:
(1) to purchase, own, hold, lease, and otherwise acquire sources
of water supply;
(2) to build, operate, and maintain facilities for the
transportation of water;
(3) to sell water to cities, to political subdivisions of this
state, to water supply corporations, to private business
entities, and to individuals;
(4) to purchase, own, hold, lease, and otherwise acquire
equipment and mechanisms necessary for sanitary sewer and
wastewater treatment;
(5) to build, operate, and maintain facilities for sanitary
sewer and wastewater treatment;
(6) to transport and treat sanitary sewer and wastewater
effluent of cities and political subdivisions of this state and
for private business entities or individuals;
(7) to purchase, own, hold, lease, and otherwise acquire
equipment and mechanisms for the drainage of storm water and
floodwater; and
(8) for the purposes outlined in Section 54.012.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
Development Board requires that matching funds be provided as a
condition for receiving a loan or grant from the Texas Water
Development Board from research and planning funds, the matching
funds may not be provided through a guarantee of matching funds
by any individual who has a financial interest in the regional
district or who will receive any direct financial benefit from a
regional district project.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.006. CONSENT OF CITY. (a) Land in the corporate limits
of a city or in the extraterritorial jurisdiction of a city may
not be included in a district unless the city grants its written
consent by resolution or ordinance to the inclusion of the land
in the district.
(b) If the governing body of a city fails or refuses to grant
permission for the inclusion of land in its extraterritorial
jurisdiction in a district within 120 days after receipt of a
written request, the person or entity desiring to create the
district may petition the governing body of the city to make
available the water, sewer, or drainage service contemplated to
be provided by the district.
(c) Failure of the governing body of the city and the requesting
district to execute a mutually agreeable contract providing for
the service requested within six months after receipt of a
request for consent constitutes authorization for the inclusion
of land in the district under this section. Authorization for the
inclusion of the land in the district under this section means
only authorization to initiate proceedings to include the land in
the district as otherwise provided by this chapter.
(d) Sections 54.016(e), (f), (g), and (h) apply under this
chapter.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.007. GRANTING OR REFUSING PETITION; EXCLUSION OF
TERRITORY. (a) If the commission finds after considering the
petition that the petition conforms to the requirements of this
chapter and that the creation of the district would be of benefit
to the territory to be included in the district, the commission
shall issue an order granting the petition for creation. If the
commission finds that part of the territory included in the
proposed district will not benefit from the creation of the
district, the commission shall exclude that territory from the
proposed district and redefine the proposed district's boundaries
accordingly.
(b) If the commission finds that the petition does not conform
to the requirements of this chapter or that the proposed projects
are not of benefit to the territory in the proposed district, the
commission shall issue an order either denying the petition or
requiring petitioners to amend their petition.
(c) A copy of the order of the commission granting or denying a
petition shall be mailed to each city having extraterritorial
jurisdiction in the county or counties in which the district is
to be located that has requested notice of hearings as provided
by Section 54.019.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995. Amended by Acts 1997, 75th Leg., ch. 1070, Sec. 39, eff.
Sept. 1, 1997.
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
Sec. 59.021. DIRECTORS. (a) The commission shall appoint
temporary directors who shall serve until permanent directors are
elected.
(b) A petition requesting creation filed in accordance with
Section 59.006 may provide that directors be elected by precinct
as provided by Subsection (h).
(c) The board of directors is composed of five members unless
the petition requesting creation of the district requests and the
commission approves a board that consists of seven members.
(d) Permanent directors shall be elected in accordance with
Chapter 49.
(e) If the petition for creation has requested the election of
seven directors as provided by Subsection (c), unless otherwise
agreed, the three directors elected who received the fewest
number of votes, whether their election is by precinct or at
large, shall serve until the next directors election following
the confirmation election and the four who received the highest
number of votes shall serve until the second directors election
after the confirmation election.
(f) After the creation of the district, the persons or entities
that petitioned for creation or 50 qualified voters of the
district may file a petition with the commission requesting to
expand the district's board to seven members. If the commission
grants the petition, the commission shall appoint two temporary
directors. One temporary director shall serve until the next
directors election and one shall serve until the next succeeding
directors election. At each election one director shall be
elected to serve for a four-year term.
(g) If the board of directors of the district is expanded to
seven members, four directors shall constitute a quorum and a
concurrence of four directors is necessary in all matters
pertaining to the business of the district.
(h) A petition for the creation of a district may request that
the board be elected to represent a geographic area. If the
petition requesting creation of the district is granted, the
commission shall establish precincts from which the directors are
to be elected. In establishing the precincts the commission shall
attempt to have directors represent geographic areas with equal
numbers of people and shall comply with the federal Voting Rights
Act of 1965 (42 U.S.C. Sections 1971, 1973 et seq.). Thereafter,
the board of directors of the district shall revise the precincts
from time to time to cause them to comply with the provisions of
this subsection.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.022. ABILITY TO SET RATES. The district may charge
rates to persons and entities located outside the district's
boundaries on terms, rates, and charges the board of directors
may determine to be advisable. In setting rates for
out-of-district customers, the board shall set rates sufficient
to enable it to meet operation and maintenance expenses and to
pay the principal of and interest on debt issued in connection
with providing service and to provide a reasonable reserve for
replacements to the district. In setting rates, the district may
take into consideration past operation and debt service expenses.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.023. ISSUANCE OF BONDS. The district may issue bonds
for the purpose of purchasing, constructing, acquiring, owning,
operating, repairing, improving, or extending any district works,
improvements, facilities, plants, equipment, and appliances
needed to accomplish the purposes of the district, including
works, improvements, facilities, plants, equipment, and
appliances needed to provide a waterworks system, sanitary sewer
system, storm sewer system, solid waste disposal system, and
parks and recreational facilities. Prior to issuing bonds or
other obligations, a confirmation election must be held in
accordance with Chapter 49, and a majority of voters must approve
the establishment of the district.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS. (a) A
municipal district may be excluded from the district as provided
by this section.
(b) To be excluded, the board of directors of the municipal
district may adopt a resolution requesting exclusion by a
majority vote of its board of directors and shall file the
petition with the directors of the proposed district before the
first confirmation election.
(c) At the time of the district's confirmation election, a
separate voting precinct shall be used for the qualified voters
in each municipal district that has filed a petition requesting
exclusion. The votes in each precinct shall be tallied separately
to determine whether that municipal district will be excluded
from the district boundaries.
(d) If a majority of the votes cast in a municipal district
requesting exclusion vote against confirmation of the district,
the votes cast in the confirmation election shall not be counted
for the confirmation election, bond election, or maintenance tax
election, and that municipal district must be excluded from the
boundaries of the district by the board of directors of the
district at the time the results of the election are canvassed.
(e) After a confirmation election at which the district is
authorized to be created, the board of directors of the district
shall adopt an order redefining the boundaries of the district to
exclude those municipal districts petitioning for exclusion that
have voted not to confirm creation of the district.
(f) Before the creation hearing, any municipal district located
within the proposed district may petition the commission for a
separate voting precinct to be used within the boundaries of the
petitioning district at the time of the district's confirmation
election. If the commission grants the petition requesting a
separate voting precinct, Subsections (c) through (e) apply.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district may
be created pursuant to a petition granted by the commission, a
confirmation election must be held within the boundaries of the
proposed district.
(b) The directors appointed by the commission shall call and
hold the confirmation election in the manner provided for
conducting elections under Chapter 49. The provisions of those
sections relating to a directors election do not apply to an
election held under this section.
(c) If the creation of the district is defeated, subsequent
confirmation elections may not be held to confirm the creation of
the district.
(d) A bond election, maintenance tax election, and any other
election may be held at the same time and in conjunction with a
confirmation election.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
LANDOWNERS. In addition to the method of adding land to a
district described in Section 59.052, defined areas of land,
regardless of whether they are contiguous to the district, may be
annexed to the district in the manner provided in Chapter 49.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.052. FILING OF PETITION. A petition requesting the
annexation of a defined area that is signed by a majority in
value of the owners of land in the defined area, as shown by the
tax rolls of the county or counties in which that area is
located, that is signed by 50 landowners if the number of
landowners is more than 50, that is signed by the single
landowner of 2,000 or more acres of land in the area, or that is
signed by a majority of the governing body of a municipal
district, a county, or a city requesting annexation shall be
filed with the secretary of the board.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF BONDS.
(a) If the board considers it advisable before the issuance of
any bonds, the board may dissolve the district and liquidate the
affairs of the district as provided by Sections 54.734 through
54.738.
(b) If a majority of the board finds at any time before the
authorization of bonds that the proposed district and its
proposed activities are for any reason impracticable or
apparently cannot be successfully and beneficially accomplished,
the board may issue notice of a hearing on a proposal to dissolve
the district.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
order to dissolve the district may be judicially reviewed as
provided in Chapter 49.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
SUBCHAPTER D. MISCELLANEOUS
Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) If a
city annexes all or any part of the territory within a district,
or incorporates all or any part of any territory within a
district, the city shall succeed to the powers, duties, assets,
and obligations of the district as provided by this chapter.
(b) On annexation of any part of the territory of a district by
a city or incorporation by a city of any part of the territory of
a district, the city shall assume a pro rata share of all debt of
the district payable in whole or in part by ad valorem taxes
incurred for water, sewer, or drainage purposes or any
combination of the three purposes. The percentage of the
assumption shall be determined by multiplying the total debt of
the district payable in whole or in part from taxes incurred for
the stated purposes by a fraction, the numerator of which is the
assessed value of the property to be annexed or incorporated
based on the most recent certified county property tax rolls at
the time of annexation or incorporation and the denominator of
which is the total assessed value of the property of the district
based on the most recent certified county property tax rolls at
the time of annexation or incorporation.
(c) After annexation by a city of a portion of the territory of
a district or incorporation over any part of the territory of a
district, the district may not levy taxes on that territory, and
the territory is no longer considered a part of the district for
any purpose.
(d) If any district's debt payable in whole or in part from ad
valorem taxes is assumed by a city, the governing body of the
city shall levy and cause to be collected taxes on all taxable
property within the city or provide other funds sufficient to pay
the city's pro rata share of the principal of and interest on
that debt as it becomes due and payable.
(e) If a city annexes or incorporates the entire territory of
the district, the district shall be dissolved in accordance with
Sections 43.074, 43.075, and 43.081, Local Government Code, if
the district is located in one city or Sections 43.076 through
43.079, Local Government Code, if the district is located in more
than one city.
(f) Section 43.071, Local Government Code, does not apply to the
annexation of a district created pursuant to this chapter.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.
Sec. 59.072. OTHER LAWS. (a) This chapter prevails over any
other law in conflict with or inconsistent with this chapter.
(b) Except as specifically provided by this chapter, Chapter 49
and Sections 54.018, 54.019(a), (b), (c), and (d), 54.020,
54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208, 54.502
through 54.505, 54.507(b) and (c), 54.510 through 54.512, 54.514,
54.515, 54.518, 54.520, 54.521, 54.601 through 54.604, and 54.735
through 54.737 apply under this chapter.
(c) Section 54.019(e) does not apply to a district governed by
this chapter.
Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,
1995.