TLC: Special District Local Laws Code Proposed Chapters

80C89(1) JJT

CHAPTER 21. UPPER SABINE VALLEY SOLID WASTE MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 21.001. DEFINITIONS. In this Act:

(1) "Board" means the district's board of directors.

(2) "Commission" means the Texas Commission on Environmental Quality.

(3) "Director" means a board member.

(4) "District" means the Upper Sabine Valley Solid Waste Management District.

(5) "Local government" means:

(A) a municipality;

(B) a county; or

(C) a water or other special district or authority acting under Sections 52(b)(1) and (2), Article III, or Section 59, Article XVI, Texas Constitution.

(6) "Solid waste" has the meaning assigned by Section 361.003, Health and Safety Code.

(7) "Water" means groundwater, percolating or otherwise, lakes, bays, ponds, springs, rivers, streams, creeks, and all other bodies of surface water, natural or artificial, that are wholly or partly in the district.

(8) "Water pollution" means alteration of the physical, chemical, or biological quality of water or contamination of water that:

(A) renders the water harmful, detrimental, or injurious to:

(i) humans, animal life, vegetation, or property; or

(ii) public health, safety, or welfare; or

(B) impairs the usefulness or the public enjoyment of the water for any lawful or reasonable purpose. (V.A.C.S. Art. 4477-7k, Sec. 1.03(1), (2), (4), (5), (7), (14), (16), (17).)

Source Law

Sec. 1.03. In this Act:

(1) "Board" means the board of directors of the district.

(2) "Commission" means the Texas Water Commission.

(4) "Director" means a member of the board.

(5) "District" means the Upper Sabine Valley Solid Waste Management District created under this Act.

(7) "Local government" means an incorporated municipality, a county, or a water or other special district or authority acting under Article III, Sections 52(b)(1) and (2), or Article XVI, Section 59, of the Texas Constitution.

(14) "Solid waste" has the meaning assigned by Section 361.003, Health and Safety Code.

(16) "Water" means groundwater, percolating or otherwise, lakes, bays, ponds, springs, rivers, streams, creeks, and all other bodies of surface water, natural or artificial, that are wholly or partially within the district.

(17) "Water pollution" means the alteration of the physical, chemical, or biological quality of or the contamination of water that renders the water harmful, detrimental, or injurious to humans, animal life, vegetation, or property, or to public health, safety, or welfare, or that impairs the usefulness or the public enjoyment of the water for any lawful or reasonable purpose.

Revisor's Note

(1) Section 1.03(2), V.A.C.S. Article 4477-7k, defines "commission" as the Texas Water Commission. The revised law substitutes "Texas Commission on Environmental Quality" for "Texas Water Commission" because the name of the Texas Water Commission was changed to the Texas Natural Resource Conservation Commission by Section 1.085, Chapter 3, Acts of the 72nd Legislature, 1st Called Session, 1991. In 2004, the name of the Texas Natural Resource Conservation Commission was changed by Section 18.01, Chapter 965, Acts of the 77th Legislature, Regular Session, 2001, to the Texas Commission on Environmental Quality.

(2) Section 1.03(3), V.A.C.S. Article 4477-7k, defines "department" as the Texas Department of Health. The revised law omits the definition and throughout the chapter changes references to the department to "the commission" because the powers and duties of the department relating to the treatment, handling, storage, and disposal of solid waste were transferred to the Texas Natural Resource Conservation Commission by Sections 1.087 and 1.088, Chapter 3, Acts of the 72nd Legislature, 1st Called Session, 1991. Subsequently, the name of that commission was changed to the "Texas Commission on Environmental Quality." See Revisor's Note (1) to this section. The omitted law reads:

(3) "Department" means the Texas Department of Health.

(3) Section 1.03(6), V.A.C.S. Article 4477-7k, defines "industrial solid waste." The revised law omits the definition because the term is not used in that article or in the revised law. The omitted law reads:

(6) "Industrial solid waste" has the meaning assigned by Section 361.003, Health and Safety Code.

(4) Section 1.03(7), V.A.C.S. Article 4477-7k, refers to an "incorporated municipality." The revised law omits "incorporated" because under the Local Government Code all municipalities must be incorporated.

(5) Section 1.03(8), V.A.C.S. Article 4477-7k, defines "municipal solid waste." The revised law omits the definition as unnecessary. The term appears only in Section 4.19(e), V.A.C.S. Article 4477-7k, which provides that the district may assume powers under Section 361.165, Health and Safety Code, "including the power to … exercise municipal solid waste management authority." Section 1.03(8) provides that the term has the meaning assigned by Section 361.003, Health and Safety Code, which would apply on its own terms to a power assumed under Section 361.165. The omitted law reads:

(8) "Municipal solid waste" has the meaning assigned by Section 361.003, Health and Safety Code.

(6) Section 1.03(10), V.A.C.S. Article 4477-7k, defines "person." The revised law omits the definition because it duplicates, in substance, the definition of "person" provided by Section 311.005, Government Code (Code Construction Act). The omitted law reads:

(10) "Person" means an individual, public or private corporation, political subdivision, governmental agency, municipality, copartnership, association, firm, trust, estate, or any other legal entity.

(7) Section 1.03(12), V.A.C.S. Article 4477-7k, defines "rule." The revised law omits the definition because it duplicates the definition of "rule" provided by Section 311.005, Government Code (Code Construction Act). The omitted law reads:

(12) "Rule" includes regulation.

(8) Section 1.03(13), V.A.C.S. Article 4477-7k, defines "sewage." The revised law omits the definition as unnecessary. The term appears only in Section 4.20(a), V.A.C.S. Article 4477-7k, which provides that the district may apply for designation as an authorized agent to "enforce on-site sewage disposal rules under Chapter 366, Health and Safety Code." Section 1.03(13) provides that the term has the meaning assigned by Section 366.002, which would apply on its own terms to the rules under Chapter 366. The omitted law reads:

(13) "Sewage" has the meaning assigned by Section 366.002, Health and Safety Code.

(9) Section 1.03(15), V.A.C.S. Article 4477-7k, defines "solid waste management system." The revised law omits the definition because the term is not used in that article or in the revised law. The omitted law reads:

(15) "Solid waste management system" means a system for controlling all aspects of the collection, handling, transportation, processing, recovery, and disposal of solid waste.

Revised Law

Sec. 21.002. NATURE OF DISTRICT. The district is a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution. (V.A.C.S. Art. 4477-7k, Sec. 2.01.)

Source Law

Sec. 2.01. Pursuant to Article XVI, Section 59, of the Texas Constitution, a conservation and reclamation district to be known as the Upper Sabine Valley Solid Waste Management District is created as a governmental agency and body politic and corporate of the state.

Revisor's Note

Section 2.01, V.A.C.S. Article 4477-7k, provides that the district is created as a "governmental agency and body politic and corporate of the state." The revised law omits the quoted phrase because it duplicates a portion of Section 59(b), Article XVI, Texas Constitution, which provides that a conservation and reclamation district is a governmental agency and body politic and corporate.

Revised Law

Sec. 21.003. PURPOSE. The purpose of this chapter is to establish an instrumentality to develop and carry out a regional water quality protection program through solid waste management and regulation of waste disposal for Rains, Upshur, and Wood Counties and for the portion of Smith County that is north of Interstate Highway 20. (V.A.C.S. Art. 4477-7k, Sec. 1.01.)

Source Law

Sec. 1.01. The purpose of this Act is to establish an instrumentality to develop and carry out a regional water quality protection program through solid waste management and regulation of waste disposal for the area encompassed by Upshur, Wood, and Rains counties and by the portion of Smith County that is north of Interstate Highway 20.

Revised Law

Sec. 21.004. FINDINGS AND DECLARATION OF POLICY. (a) The legislature finds that:

(1) the quality of water in East Texas is materially affected by the disposal of waste throughout the region;

(2) a regional effort to study water pollution, plan corrective and preventive measures, provide coordinated facilities for waste disposal, and regulate waste disposal is far more effective than efforts on a smaller scale;

(3) solid waste, as well as other waste, may impair water quality by seepage or drainage; and

(4) creation of the district would advance the established policy of this state to maintain the quality of the water in the state consistent with:

(A) public health and enjoyment;

(B) the propagation and protection of terrestrial and aquatic life;

(D) the economic development of the state.

(b) All area included in the district will benefit from the exercise of the power conferred by this chapter.

(c) The district is a public entity performing an essential public function. (V.A.C.S. Art. 4477-7k, Secs. 1.02(a), (c), 7.01 (part).)

Source Law

Sec. 1.02. (a) The legislature finds that:

(1) the quality of water in East Texas is materially affected by the disposal of waste throughout the region;

(3) solid waste, as well as other waste, may impair water quality by seepage or drainage; and

(4) creation of the Upper Sabine Valley Solid Waste Management District would advance the established policy of this state to maintain the quality of the water in the state consistent with:

(A) the public health and public enjoyment;

(B) the propagation and protection of terrestrial and aquatic life;

(D) the economic development of the state.

(c) The legislature finds that all of the area included in the district is benefited by the exercise of the power conferred by this Act.

Sec. 7.01. Since the district created under this chapter is a public entity performing an essential public function, … .

Revisor's Note

Section 1.02(b), V.A.C.S. Article 4477-7k, contains legislative findings relating to the performance of certain requirements under Sections 59(d) and (e), Article XVI, Texas Constitution, and to the authority of the legislature to enact Article 4477-7k. The revised law omits the provision as executed. The omitted law reads:

(b) The legislature finds that this Act is in compliance with Article XVI, Sections 59(d) and (e), of the Texas Constitution and that the legislature has the power and authority to enact this Act.

Revised Law

Sec. 21.005. 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 impact on state water quality caused by the construction and operation of numerous small waste collection, treatment, and disposal facilities. (V.A.C.S. Art. 4477-7k, Sec. 4.23.)

Source Law

Sec. 4.23. The powers and duties conferred on the district are granted subject to the state policy to encourage the development and use of integrated area-wide waste collection, treatment, and disposal systems to serve the waste disposal needs of the citizens of the state, it being an objective of the policy to avoid the economic burden to the people and the impact on the quality of the water in the state that result from the construction and operation of numerous small waste collection, treatment, and disposal facilities to serve an area when an integrated area-wide waste collection, treatment, and disposal system for the area can be reasonably provided.

[Sections 21.006-21.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND CHANGES TO

DISTRICT TERRITORY

Revised Law

Sec. 21.051. DISTRICT TERRITORY. Unless the district territory has been modified under this subchapter, Subchapter J, Chapter 49, Water Code, or other law, the district's territory consists of Rains, Upshur, and Wood Counties and the portion of Smith County north of Interstate Highway 20. (V.A.C.S. Art. 4477-7k, Sec. 2.02.)

Source Law

Sec. 2.02. Except as provided by Section 2.07 of this Act, the district's territory consists of the area within the boundaries of Upshur, Wood, and Rains counties and that portion of Smith County that is north of Interstate Highway 20.

Revisor's Note

(1) Section 2.02, V.A.C.S. Article 4477-7k, defines the district's territory "[e]xcept as provided by Section 2.07 of this Act." The revised law omits the quoted language because Section 2.07 has been omitted from the revised law for the reason stated in Revisor's Note (1) at the end of this chapter.

(2) Section 2.02, V.A.C.S. Article 4477-7k, addresses the district's territory. For the reader's convenience, the revised law adds a reference to statutory authority to change the district's territory under Subchapter J, Chapter 49, Water Code. Chapter 49, Water Code, applies to this chapter under Sections 49.001 and 49.002, Water Code. The revised law also includes a reference to the general authority under this subchapter to add or exclude land and to the general authority to enact "other law" to change the district's territory.

Revised Law

Sec. 21.052. ANNEXATION OF COUNTY; PETITION. (a) The board may annex an adjacent county in the manner provided by this section and Sections 21.053 and 21.055.

(b) To initiate annexation proceedings, the commissioners court of the adjacent county must petition the board requesting the board to call an election for the annexation of the petitioner's county. The petition must be in writing and be endorsed by a majority of the members of the commissioners court. (V.A.C.S. Art. 4477-7k, Secs. 8.01, 8.02.)

Source Law

Sec. 8.01. The board may annex the territory within the boundaries of an adjacent county in the manner provided by this article.

Sec. 8.02. To initiate annexation proceedings, the commissioners court of the adjacent county must petition the board requesting the board to call an annexation election for the territory within the petitioner's county. The petition must be in writing and be endorsed by a majority of the members of the commissioners court.

Revisor's Note

Section 8.01, V.A.C.S. Article 4477-7k, provides that the district's board may annex territory "in the manner provided by this article." For the convenience of the reader, the revised law references the sections in this chapter that provide the manner of annexing territory.

Revised Law

Sec. 21.053. ANNEXATION PETITION HEARING; NOTICE. (a) On receipt of a petition under Section 21.052, the board shall set a date, time, and place to hold a hearing on the petition. The date may not be later than the 20th day after the date on which the board receives the petition.

(b) In addition to the notice required under the open meetings law, Chapter 551, Government Code, the board shall publish notice of the date, time, place, and purpose of the hearing in one or more newspapers with general circulation in the district and in the county to be annexed.

(d) At the conclusion of the hearing, the board shall determine if an annexation election should be held in the county to be annexed. (V.A.C.S. Art. 4477-7k, Secs. 8.03(a), (b), (c), (d).)

Source Law

Sec. 8.03. (a) On receipt of the petition, the board shall set a time and place to hold a hearing on the petition. The board shall set a date for the hearing that is not later than the 20th day after the date on which the board receives the petition.

(b) The board shall publish notice of the place, time, date, and purpose of the hearing in one or more newspapers with general circulation in the district and in the county to be annexed. This notice is in addition to the notice required under the open meetings law, Chapter 271, Acts of the 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil Statutes).

(d) At the conclusion of the hearing, the board shall determine if an election should be held in the county to be annexed to determine if the county should be annexed to the district.

Revisor's Note

Section 8.03(b), V.A.C.S. Article 4477-7k, refers to "the open meetings law, Chapter 271, Acts of the 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's Texas Civil Statutes)." That statute was codified in 1993 as Chapter 551, Government Code. The revised law is drafted accordingly.

Revised Law

Sec. 21.054. EXCLUSION OF COUNTY. (a) The commissioners court of a county in the district may petition the board to hold an election in the county to determine if a majority of voters of that county want to exclude the county from the district.

(b) If the district has not issued bonds or incurred other long-term debt before the commissioners court filed the petition, the board shall, on receipt of the petition, enter an order authorizing the commissioners court to call an election in that county.

(c) If the district issued bonds or other long-term debt before the commissioners court filed the petition, the board must obtain adequate legal and financial assurances that, if the county withdraws from the district, the county will assume and pay to the district the county's proportionate share of the district's outstanding debt based on assessed valuation of taxable property in the county and district. After obtaining assurances the board considers adequate, the board shall enter an order authorizing the commissioners court of that county to call an election in that county to determine if the county should be excluded from the district. (V.A.C.S. Art. 4477-7k, Sec. 9.01.)

Source Law

Sec. 9.01. (a) At any time before the district incurs bonded or other long term indebtedness, the commissioners court of a county within the district may petition the board to hold an election within the county to determine if a majority of voters of that county want to exclude the county from the district. On receipt of the petition, the board shall enter an order authorizing the commissioners court to call the election.

(b) After the issuance of bonds or other long term indebtedness, a county commissioners court may petition the board to hold an election to determine if the county should be excluded from the district. Before authorizing the commissioners court to call an election for this purpose, the board must obtain adequate legal and financial assurances that the county will assume and pay to the district its proportionate share, based on assessed valuation of taxable property in the county and district, of the district's outstanding debt if the county withdraws from the district. After obtaining assurances the board determines to be adequate, the board shall enter an order authorizing the commissioners court of that county to call an election in that county to determine if the county should be excluded from the district.

Revised Law

Sec. 21.055. ELECTION ON ANNEXATION OR EXCLUSION OF COUNTY. (a) Annexation or exclusion of a county is final when approved by a majority of the voters at an election held in the county to be annexed or excluded. An election in the existing district accepting the addition of a county is not required.

(b) The election must be held:

(1) not earlier than the 46th day after the date the election is ordered; and

(2) not later than the 60th day after the date the election is ordered.

(d) The election ballots shall be printed to provide for voting for or against the following, as applicable:

(1) "Adding (description of county to be added) to the Upper Sabine Valley Solid Waste Management District."

(2) "(Description of county to be added) assuming its proportionate share of the outstanding debts and taxes of the Upper Sabine Valley Solid Waste Management District, if it is added to the district."

(3) "The exclusion of ____________________ County from the Upper Sabine Valley Solid Waste Management District and assumption by the county of a duty to pay its proportionate share of the outstanding indebtedness of the district."

(e) If a district has outstanding debts or taxes, the voters in an election to approve the annexation must also determine if the annexed county will assume its proportion of the debts or taxes if added to the district.

(f) If the district has outstanding bonds or other long term obligations, the voters in the election to approve the exclusion must also determine if the excluded county will assume a duty to pay its proportion of the district's outstanding indebtedness.

(g) The board shall file a copy of the election results with the commission. (V.A.C.S. Art. 4477-7k, Secs. 8.03(e), (f), (g) (part), (h), 9.02(a), (b), (c) (part), (d).)

Source Law

[Sec. 8.03]

(e) Annexation of a county is final when approved by a majority of the voters at an election held in the county to be annexed. If the district has outstanding debts or taxes, the voters in the election to approve the annexation must also determine if the annexed county will assume its proportion of the debts or taxes if added to the district. An election in the existing district accepting the addition of the county is not required.

(f) The election ballots shall be printed to provide for voting for or against the following, as applicable:

(1) "Adding (description of county to be added) to the Upper Sabine Valley Solid Waste Management District."

(g) The election shall be held after the 45th day and on or before the 60th day after the date the election is ordered… . Section 41.001(a), Election Code, does not apply to an election held under this section.

(h) The board shall file a copy of the election results with the commission.

Sec. 9.02. (a) Exclusion of a county is final when approved by a majority of the voters at an election held in the county to be excluded. If the district has outstanding bonds or other long term obligations, the voters in the election to approve the exclusion must also determine if the excluded county will assume a duty to pay its proportion of the district's outstanding indebtedness.

(b) The ballots for the election shall be printed to provide for voting for or against the proposition, as applicable: "The exclusion of ____________________ County from the Upper Sabine Valley Solid Waste Management District and assumption by the county of a duty to pay its proportionate share of the outstanding indebtedness of the district."

(c) The election shall be held after the 45th day and on or before the 60th day after the date the election is ordered… . Section 41.001(a), Election Code, does not apply to an election held under this section.

(d) The board shall file a copy of the election results with the commission.

Revisor's Note

Sections 8.03(g) and 9.02(c), V.A.C.S. Article 4477-7k, provide that the Election Code governs elections held under those sections. The revised law omits the provisions because Section 1.002, Election Code, states that the Election Code applies to all elections held in this state. The omitted law reads:

[Sec. 8.03]

(g) … The election shall be ordered and notice of the election shall be given in accordance with the Election Code… .

[Sec. 9.02]

Revised Law

Sec. 21.056. CONTINUED BOND OBLIGATION FOR EXCLUDED COUNTY. The exclusion of a county under Section 21.054(c) does not relieve the district of its obligation to perform and observe the covenants and obligations or the conditions prescribed by the order or resolution authorizing the issuance of the district's bonds. (V.A.C.S. Art. 4477-7k, Sec. 9.03.)

Source Law

Sec. 9.03. The exclusion of a county under Section 9.01(b) does not relieve the district of its obligation to perform and observe the covenants and obligations or the conditions prescribed by the orders or resolution authorizing the issuance of the district's bonds.

[Sections 21.057-21.100 reserved for expansion]

SUBCHAPTER C. BOARD OF DIRECTORS

Revised Law

Sec. 21.101. GOVERNING BODY; COMPOSITION. (a) The district is governed by a board of directors composed of at least six directors.

(b) If the district is composed of only one county, the commissioners court of that county shall appoint six persons to serve as directors.

(c) If the district is composed of two counties, the commissioners court of each county included in the district shall each appoint three persons to serve as directors.

(d) If the district is composed of three or more counties, the commissioners court of each county included in the district shall each appoint two persons to serve as directors.

(e) At least one of the directors appointed by each commissioners court shall represent the interests of municipalities and of unincorporated communities with a population of 1,000 or more that are located in that county. (V.A.C.S. Art. 4477-7k, Sec. 3.01.)

Source Law

Sec. 3.01. (a) The district is governed by a board of directors composed of not fewer than six members who are appointed as provided by this Act.

(b) If the district is composed of only one county, the commissioners court of that county shall appoint six persons to serve as directors.

(c) If the district is composed of two counties, the commissioners court of each county included in the district shall each appoint three persons to serve as directors.

(d) If the district is composed of three or more counties, the commissioners court of each county included in the district shall each appoint two persons to serve as directors.

(e) At least one of the directors appointed by each commissioners court shall represent the interests of municipalities and of unincorporated communities with a population of 1,000 or more, according to the most recent federal decennial census, that are located in that county.

Revisor's Note

Section 3.01(e), V.A.C.S. Article 4477-7k, describes a population number that is to be determined according to the most recent federal census. The revised law omits the reference to the federal census because the reference is unnecessary. Section 311.005(3), Government Code (Code Construction Act), defines "population" as population according to the most recent federal decennial census. That definition applies to the revised law.

Revised Law

Sec. 21.102. APPOINTMENT OF DIRECTORS FROM ANNEXED COUNTY. (a) The commissioners court of an annexed county shall appoint two directors to serve on the board.

(b) The newly appointed directors shall draw lots to determine their initial terms of office. One new director shall serve an initial term that coincides with the terms of directors that expire before the expiration of two years and the other new director shall serve a term that expires after the expiration of two years but before the expiration of four years. (V.A.C.S. Art. 4477-7k, Sec. 8.04.)

Source Law

Sec. 8.04. (a) The commissioners court of the annexed county shall appoint two directors to serve on the district's board of directors.

(b) The newly appointed directors shall draw lots to determine their initial terms of office. One new director shall serve an initial term that coincides with the terms of district directors that expire within two years and the other director shall serve a term that expires within two to four years.

Revised Law

Sec. 21.103. TERM. Except as provided by Section 21.102(b), a director serves a term of four years. (V.A.C.S. Art. 4477-7k, Sec. 3.03.)

Source Law

Sec. 3.03. Except as provided by Sections 3.06 and 8.04 of this Act, a director holds office for a term of four years and until the director's successor has been appointed and has qualified.

Revisor's Note

(1) Section 3.03, V.A.C.S. Article 4477-7k, states "[e]xcept as provided by [Section] 3.06." The revised law omits the quoted language because the relevant part of Section 3.06 has been omitted from the revised law as executed. See Revisor's Note (2) at the end of the chapter.

(2) Section 3.03, V.A.C.S. Article 4477-7k, provides that a director serves a term of four years "and until the director's successor has been appointed and has qualified." The revised law omits the quoted language because, under Section 17, Article XVI, Texas Constitution, an officer in the state is to continue to perform the officer's official duties until a successor has qualified.

Revised Law

Sec. 21.104. ELIGIBILITY TO SERVE. To be eligible to be appointed as or to serve as a director, a person must be:

(1) at least 18 years of age;

(2) a qualified voter; and

(3) a resident of the county governed by the appointing commissioners court. (V.A.C.S. Art. 4477-7k, Sec. 3.02(a).)

Source Law

Sec. 3.02. (a) To be eligible to be appointed as or to serve as a director, a person must be:

(1) 18 years of age or older;

(2) a qualified voter; and

(3) a resident of the county of the appointing commissioners court.

Revised Law

Sec. 21.105. VACANCY. A vacancy on the board shall be filled in the same manner as the original appointment for the unexpired term. (V.A.C.S. Art. 4477-7k, Sec. 3.04.)

Source Law

Sec. 3.04. A vacancy on the board shall be filled in the same manner as the original appointment for the unexpired term.

Revised Law

Sec. 21.106. DIRECTOR'S BOND. Each director must execute a $5,000 bond with a corporate surety authorized to do business in this state and conditioned on the faithful performance of the director's duties. (V.A.C.S. Art. 4477-7k, Sec. 3.02(c) (part).)

Source Law

(c) Each director must execute a bond in the amount of $5,000 with a corporate surety authorized to do business in this state and conditioned on the faithful performance of the director's duties… .

Revisor's Note

Section 3.02(c), V.A.C.S. Article 4477-7k, provides that the district shall pay the premiums of a director's bond. The revised law omits this provision because it duplicates, in substance, Section 49.055(c), Water Code. Throughout this chapter, the revised law omits law that is superseded by Chapter 49, Water Code, or that duplicates law contained in that chapter. Chapter 49 applies to the district under Sections 49.001 and 49.002, Water Code. The omitted law reads:

Revised Law

Sec. 21.107. TERM OF OFFICERS. A person selected as an officer serves for a term of one year. (V.A.C.S. Art. 4477-7k, Sec. 3.06(b).)

Source Law

(b) A person selected as an officer serves for a term of one year.

Revised Law

Sec. 21.108. BYLAWS. The board shall adopt bylaws. The bylaws must prescribe the powers and duties of, and procedures for removal from, a board office. (V.A.C.S. Art. 4477-7k, Sec. 3.06(d) (part).)

Source Law

(d) The board shall adopt bylaws … . The bylaws must prescribe the powers, duties, and procedures for removal from a board office.

Revisor's Note

Section 3.06(d), V.A.C.S. Article 4477-7k, refers to the board's initial adoption of bylaws. The revised law omits the provision as executed. The omitted law reads:

(d) [The board shall adopt bylaws] at the initial meeting or as soon after the initial meeting as practicable… .

Revised Law

Sec. 21.109. BOARD MEETINGS. Except as otherwise provided by law, the board shall meet at least one time each quarter and may meet at any other time provided by its bylaws. (V.A.C.S. Art. 4477-7k, Sec. 3.07(a).)

Source Law

Sec. 3.07. (a) Except as otherwise provided by law, the board shall meet at least one time each quarter and may meet at any other time provided by its bylaws.

Revisor's Note

(1) Section 3.07(b), V.A.C.S. Article 4477-7k, provides that a majority constitutes a quorum. The revised law omits this provision because it duplicates Section 311.013, Government Code (Code Construction Act), which provides that a quorum of a public body is a majority of the number of members fixed by statute. The omitted law reads:

(b) A majority of the members of the board constitute a quorum for the transaction of business of the district.

(2) Section 3.07(c), V.A.C.S. Article 4477-7k, provides that a concurrence of a majority of directors is required to take an official action of the district. The revised law omits the provision because, under common law, the majority of the members of a body present at a meeting may act for the body if at least a quorum is present. The omitted law reads:

Revised Law

Sec. 21.110. COMPENSATION. (a) Unless the board by resolution increases the rate of reimbursement to an amount authorized by Section 49.060, Water Code, a director other than a director described by Subsection (c) is entitled to receive $50 a day and reimbursement for actual and necessary expenses incurred for each day the director:

(1) attends a board meeting; and

(2) attends to the business of the district that is authorized by board resolution or motion.

(b) A director is not entitled to receive a per diem allowance for more than 60 days in a calendar year.

(c) If a member of a commissioners court or a municipal government officer is appointed as a director, the member's or officer's service as a director is considered an additional duty of the member's or officer's existing office. The member or officer is not entitled to a per diem allowance under this section, but is entitled to reimbursement for actual and necessary expenses incurred in performing official duties as a director. (V.A.C.S. Art. 4477-7k, Secs. 3.02(b), 3.10.)

Source Law

[Sec. 3.02]

(b) If a member of a commissioners court or a municipal government officer is appointed as a director, the member's or officer's service as a director is considered an additional duty of the member's or officer's existing office. The member or officer is not entitled to a per diem allowance under Section 3.10 of this Act, but is entitled to reimbursement for actual and necessary expenses incurred in performing official duties as a director.

Sec. 3.10. (a) A director is entitled to receive $50 a day and reimbursement for actual and necessary expenses incurred:

(1) for each day the director attends meetings of the board; and

(2) for each day the director attends to the business of the district that is authorized by board resolution or motion.

(b) A director is not entitled to receive a per diem allowance for more than 60 days in any one calendar year.

Revisor's Note

Section 3.10(a), V.A.C.S. Article 4477-7k, provides in part for a director's fee not to exceed $50 for each day of a director's service. Section 49.060, Water Code, authorizes fees of office not to exceed $150 for each day spent in the performance of board duties. Section 49.060(e), however, provides that the amount of the fee set by Section 49.060 does not apply to a district if it would result in a fee increase unless the district's board by resolution adopts a higher fee. The revised law is drafted accordingly.

Revised Law

Sec. 21.111. CONFLICT OF INTEREST IN CONTRACT. A director who is financially interested in a contract to be executed by the district for the purchase of property or the construction of facilities shall disclose that fact to the other directors and may not vote on the acceptance of the contract. (V.A.C.S. Art. 4477-7k, Sec. 3.09.)

Source Law

Sec. 3.09. A director who is financially interested in a contract to be executed by the district for the purchase of property or the construction of facilities shall disclose that fact to the other directors and may not vote on the acceptance of the contract.

Revisor's Note

(End of Subchapter)

(1) Section 3.05, V.A.C.S. Article 4477-7k, requires a director to file the statement and take the constitutional oath of office. The revised law omits the provision because it duplicates Section 1, Article XVI, Texas Constitution, which requires all officers to take the oath (or affirmation) before assuming office. The omitted law reads:

Sec. 3.05. Each director shall file the statement and take the constitutional oath of office required of state officers.

(2) Section 3.14(b), V.A.C.S. Article 4477-7k, requires the board to keep complete and accurate minutes of its meetings. The revised law omits that provision because it duplicates, in substance, part of Section 49.065, Water Code. The omitted law reads:

(b) The district shall keep complete and accurate minutes of its meetings.

[Sections 21.112-21.150 reserved for expansion]

SUBCHAPTER D. ADMINISTRATIVE POWERS AND DUTIES

Revised Law

Sec. 21.151. PRINCIPAL OFFICE. The district shall maintain its principal office in the district. (V.A.C.S. Art. 4477-7k, Sec. 3.13.)

Source Law

Sec. 3.13. The district shall maintain its principal office inside the district's boundaries.

Revised Law

Sec. 21.152. GENERAL MANAGER. (a) The board shall employ a general manager for a term and salary set by the board.

(b) The general manager is the chief executive officer of the district. Under policies established by the board, the general manager is responsible to the board for:

(1) administering board directives;

(2) keeping district records, including minutes of the board's meetings;

(3) coordinating with state, federal, and local agencies;

(4) developing plans and programs for the board's approval;

(5) hiring, supervising, training, and discharging district employees;

(6) contracting for or retaining technical, scientific, legal, fiscal, and other professional services; and

(7) performing any other duty assigned to the general manager by the board.

Source Law

Sec. 3.11. (a) The board shall employ a general manager for a term and salary set by the board.

(b) The general manager is the chief executive officer of the district. Under policies established by the board, the general manager is responsible to the board for:

(1) administering the directives of the board;

(2) keeping the district's records, including minutes of the board's meetings;

(3) coordinating with state, federal, and local agencies;

(4) developing plans and programs for the board's approval;

(5) hiring, supervising, training, and discharging district employees;

(6) contracting for or retaining technical, scientific, legal, fiscal, and other professional services; and

(7) performing any other duty assigned to the general manager by the board.

Revised Law

Sec. 21.153. EMPLOYEE AND GENERAL MANAGER FIDELITY BONDS. (a) The general manager and each district employee charged with the collection, custody, or payment of any district money shall execute a fidelity bond. The board shall approve the form, amount, and surety of the bond.

(b) The district shall pay the premiums on employee bonds under this section. (V.A.C.S. Art. 4477-7k, Sec. 3.12.)

Source Law

Sec. 3.12. (a) The general manager and each employee of the district charged with the collection, custody, or payment of any money of the district shall execute a fidelity bond. The board shall approve the form, amount, and surety of the bond.

(b) The district shall pay the premiums on the employees' bonds under this section.

Revised Law

Sec. 21.154. ATTORNEY. (a) The board may appoint an attorney for the district.

(b) The person appointed under this section is entitled to the compensation provided by the district's budget. (V.A.C.S. Art. 4477-7k, Secs. 3.08(a), (b).)

Source Law

Sec. 3.08. (a) The board may appoint an attorney for the district.

(b) The person appointed under this section is entitled to the compensation provided by the district's budget.

Revised Law

Sec. 21.155. RECORDS; LIMIT ON DISCLOSURE. (a) The district shall keep its accounts, contracts, documents, minutes, and other records at its principal office.

(b) The board and its employees may not disclose a district record that relates to trade secrets or the economics of an industry's operations. (V.A.C.S. Art. 4477-7k, Secs. 3.14(c), (d).)

Source Law

(d) Neither the board nor its employees may disclose a district record that relates to trade secrets or the economics of an industry's operations.

Revisor's Note

(End of Subchapter)

(1) Section 3.15, V.A.C.S. Article 4477-7k, permits the district to enter into contracts in the name of the district. The revised law omits the section because it duplicates Section 49.067(a), Water Code. The omitted law reads:

Sec. 3.15. The board may enter into contracts as provided by this Act, and those contracts shall be executed by the board in the name of the district.

(2) Section 3.16, V.A.C.S. Article 4477-7k, states that the district is subject to the continuing right of supervision by the state. The revised law omits the section because it duplicates Section 12.081, Water Code. The omitted law reads:

Sec. 3.16. The district is subject to the continuing right of supervision by the state in accordance with state law.

(3) Section 3.18, V.A.C.S. Article 4477-7k, requires the board to adopt a seal. The revised law omits the provision because it duplicates Section 49.061, Water Code. The omitted law reads:

Sec. 3.18. The board shall adopt a seal for the district and may alter the form of the seal from time to time.

[Sections 21.156-21.200 reserved for expansion]

SUBCHAPTER E. GENERAL POWERS AND DUTIES

Revised Law

Sec. 21.201. ADMINISTRATION, ENFORCEMENT, AND ACCOMPLISHMENT OF CHAPTER. (a) The district shall:

(1) administer and enforce this chapter; and

(2) use district facilities and powers to accomplish the purposes of this chapter.

(b) The district may advise, consult, contract, and cooperate with the federal government, the state, a local government, or a private entity to carry out any purpose or power under this chapter. (V.A.C.S. Art. 4477-7k, Secs. 4.01(a), 4.03.)

Source Law

Sec. 4.01. (a) The district shall administer and enforce this Act and shall use its facilities and powers to accomplish the purposes of this Act.

Sec. 4.03. To carry out any purposes or powers under this Act, the district may advise, consult, contract, and cooperate with the federal government and its agencies, the state and its agencies, local governments, and private entities.

Revisor's Note

Section 4.03, V.A.C.S. Article 4477-7k, permits the district to consult and contract with the federal government "and its agencies" and the state "and its agencies." The revised law omits the quoted language because, in this context, those terms are included in the meaning of "federal government" and "the state," respectively.

Revised Law

Sec. 21.202. CONSERVATION AND RECLAMATION DISTRICT POWERS. Except as expressly limited by this chapter, the district has all powers, rights, and privileges necessary and convenient for accomplishing the purposes of this chapter that are conferred by general law on a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution, including the powers, rights, and privileges conferred by Subtitle B, Title 5, Health and Safety Code, on a local or regional government. (V.A.C.S. Art. 4477-7k, Sec. 4.01(g).)

Source Law

(g) Except as expressly limited by this Act, the district has all powers, rights, and privileges necessary and convenient for accomplishing the purposes of this Act conferred by general law on a conservation and reclamation district created under Article XVI, Section 59, of the Texas Constitution, including specifically all powers, rights, and privileges conferred by Subtitle B, Title 5, Health and Safety Code, on a local or regional government.

Revised Law

Sec. 21.203. RULES; HEARINGS. (a) The board, after notice and hearing, may adopt rules necessary to carry out this chapter.

(b) The board shall adopt rules establishing procedures for giving notice and holding a hearing. (V.A.C.S. Art. 4477-7k, Sec. 4.01(b).)

Source Law

(b) After notice and hearing, the board may adopt rules necessary to carry out this Act. The board shall adopt rules providing procedures for giving notice and holding hearings.

Revised Law

Sec. 21.204. SCOPE OF DISTRICT'S REGULATORY POWER. The regulatory powers of the district under this chapter apply to each person in the district. (V.A.C.S. Art. 4477-7k, Sec. 4.01(f).)

Source Law

(f) The regulatory powers of the district under this Act extend to every person within the district.

Revised Law

Sec. 21.205. PLANS. The district may prepare and adopt plans for and may purchase, construct, acquire, own, operate, maintain, repair, improve, and extend inside and outside district boundaries any works, improvements, waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances necessary to collect, transport, process, dispose of, and control domestic, industrial, and communal waterborne and solid waste in the district. (V.A.C.S. Art. 4477-7k, Sec. 4.01(c).)

Source Law

(c) The district may prepare and adopt plans for and may purchase, construct, acquire, own, operate, maintain, repair, improve, and extend inside and outside the boundaries of the district any works, improvements, waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances necessary to collect, transport, process, dispose of, and control domestic, industrial, and communal waterborne and solid waste within the district.

Revised Law

Sec. 21.206. STUDIES AND RESEARCH. The district shall:

(1) study and research the control of water pollution and waste disposal in the district;

(2) cooperate with the commission in any study; and

(3) use the results of the studies. (V.A.C.S. Art. 4477-7k, Sec. 4.01(e).)

Source Law

(e) The district shall conduct studies and research for the control of water pollution and waste disposal within the district, shall cooperate with the department and commission in any studies, and shall use the results of those studies.

Revised Law

Sec. 21.207. COOPERATIVE AGREEMENTS WITH OTHER POLITICAL SUBDIVISIONS. The district may enter into a cooperative agreement with a local government or other political subdivision to:

(1) jointly conduct solid waste management activities; and

(2) charge reasonable fees for solid waste management activities. (V.A.C.S. Art. 4477-7k, Sec. 4.01(i).)

Source Law

(i) The district may enter into cooperative agreements with local governments and other political subdivisions to jointly operate solid waste management activities and to charge reasonable fees for those services.

Revised Law

Sec. 21.208. GIFTS, GRANTS, AND LOANS. The district may apply for, accept, receive, and administer gifts, grants, loans, and other money available from any source to carry out any purpose or power under this chapter. (V.A.C.S. Art. 4477–7k, Sec. 4.02.)

Source Law

Sec. 4.02. To carry out any purposes or powers under this Act, the district may apply for, accept, receive, and administer gifts, grants, loans, and other funds available from any source.

Revised Law

Sec. 21.209. ACQUISITION OF PROPERTY. The district may acquire by gift, grant, devise, purchase, lease, or the exercise of the power of eminent domain any land, easement, right-of-way, or other property interest necessary to carry out the powers and duties under this chapter. (V.A.C.S. Art. 4477–7k, Sec. 4.04.)

Source Law

Sec. 4.04. The district may acquire by gift, grant, devise, purchase, lease, or eminent domain any land, easements, rights-of-way, and other property interests necessary to carry out the powers and duties provided by this Act.

Revised Law

Sec. 21.210. EMINENT DOMAIN; COST OF RELOCATING PROPERTY. (a) The district may exercise the power of eminent domain to acquire land for a purpose authorized by Section 21.205 if the board determines, after notice and hearing, that it is necessary.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, but the district is not required to:

(1) deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code;

(2) pay in advance or give bond or other security for costs in the trial court;

(3) give bond for the issuance of a temporary restraining order or a temporary injunction; or

(4) give bond for costs or supersedeas on an appeal or writ of error.

(c) If the district, in the exercise of the power of eminent domain, requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone lines, conduits, poles, or facilities, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade of, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility. (V.A.C.S. Art. 4477-7k, Sec. 4.05.)

Source Law

Sec. 4.05. (a) The district may acquire land for the purposes authorized by Section 4.01(c) of this Act by condemnation if the board determines, after notice and hearing, that it is necessary.

(b) The district must exercise the power of eminent domain in the manner provided by Chapter 21, Property Code, but the district is not required to:

(1) deposit in the trial court money or a bond as provided by Section 21.021(a), Property Code;

(2) pay in advance or give bond or other security for costs in the trial court;

(3) give bond for the issuance of a temporary restraining order or a temporary injunction; or

(4) give bond for costs or supersedeas on an appeal or writ of error.

(c) If the district, in the exercise of the power of eminent domain, requires relocating, raising, lowering, rerouting, changing the grade, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone lines, conduits, poles or facilities, the district must bear the actual cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction to provide comparable replacement without enhancement of facilities, after deducting the net salvage value derived from the old facility.

Revised Law

Sec. 21.211. ENTRY ON LAND. (a) A district director, engineer, or employee may go on any land inside or outside the district to survey and examine the land with reference to the location of works, improvements, and waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances, and to attend to district business.

(b) The director, engineer, or employee must give the landowner five days' written notice before entering on the land.

(c) If any district activity on the land causes damage to the land or property, the district shall restore the land or property as nearly as possible to its original state. The district shall pay the restoration's cost. (V.A.C.S. Art. 4477-7k, Sec. 4.14.)

Source Law

Sec. 4.14. (a) The directors, the engineer, and the employees of the district may go on any land inside or outside the boundaries of the district to make surveys and examine the land with reference to the location of works, improvements, and waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances, and to attend to business of the district.

(b) Before a director, engineer, or employee enters on the land, five days' written notice must be given to the landowner.

(c) If any activities of the district on the land cause damages to the land or property, the land or property shall be restored as nearly as possible to its original state. The district shall pay the cost of the restoration.

Revised Law

Sec. 21.212. ROAD RIGHT-OF-WAY. A governmental entity having jurisdiction over a right-of-way along and across a public state or county road or highway may:

(1) designate the placement of district facilities located on the right-of-way; and

(2) require the relocation of district facilities to accommodate widening or changing traffic lanes. (V.A.C.S. Art. 4477-7k, Sec. 4.15(a) (part).)

Source Law

Sec. 4.15. (a) [The district has a right-of-way along and across all public state or county roads or highways provided that] a governmental entity having jurisdiction of such right-of-way may designate the place upon the right-of-way the facilities of the district shall be installed and may require the relocation of the facilities of the district to accommodate any widening or changing of traffic lanes.

Revisor's Note

Section 4.15(a), V.A.C.S. Article 4477-7k, states that the district has a right-of-way along certain highways. The revised law omits the provision because it duplicates, in substance, Section 49.220, Water Code. The omitted law reads:

(a) The district has a right-of-way along and across all public state or county roads or highways; provided that … .

Revised Law

Sec. 21.213. CONSENT FOR CHANGE OR DAMAGE TO STATE PROPERTY. The district must obtain the written consent of the governmental entity having control and jurisdiction over state property, including a facility, before the district may proceed with an action to change or damage the property. (V.A.C.S. Art. 4477-7k, Sec. 4.15(b).)

Source Law

(b) The district may not proceed with any action to change, alter, or damage facilities or property of the state without having first obtained the written consent of the governmental entity having control and jurisdiction of such facilities or property.

Revisor's Note

Section 4.15(b), V.A.C.S. Article 4477-7k, refers to an action to "change, alter, or damage" a facility. The revised law omits "alter" because it is included in the meaning of "change."

Revised Law

Sec. 21.214. BIDS ON CONTRACTS FOR PURCHASE OF VEHICLES, EQUIPMENT, AND SUPPLIES OVER $15,000; EXCEPTION. (a) If the estimated amount of a proposed contract to purchase vehicles, equipment, or supplies is more than $15,000, the board shall ask for competitive bids as provided by Subchapter B, Chapter 271, Local Government Code.

(b) This section does not apply to:

(1) the purchase of property from a public agency; or

(2) a contract for personal or professional services. (V.A.C.S. Art. 4477-7k, Sec. 4.13.)

Source Law

Sec. 4.13. (a) If the estimated amount of a proposed contract for the purchase of vehicles, equipment, or supplies is more than $15,000, the board shall ask for competitive bids as provided by Section 4.07 of this Act.

(b) This section does not apply to purchase of property from public agencies or to contracts for personal or professional services.

Revisor's Note

Section 4.13(a), V.A.C.S. Article 4477-7k, refers to competitive bidding as provided by "Section 4.07 of this Act." For the convenience of the reader the revised law substitutes for the quoted language a reference to Subchapter B, Chapter 271, Local Government Code, which is the relevant law referenced in Section 4.07 (revised in this chapter as Section 21.252).

Revisor's Note

(End of Subchapter)

(1) Section 4.01(d), V.A.C.S. Article 4477-7k, requires the district to acquire permits required by state law to carry out district purposes. The revised law omits the provision because a state law requiring the district to obtain a permit is valid on its own terms. The omitted law reads:

(d) The district shall acquire all permits required by state law that are necessary to carry out this article.

(2) Section 4.01(h), V.A.C.S. Article 4477-7k, provides that the powers granted to the district are cumulative of powers granted by other law. The revised law omits the provision because an accepted general principle of statutory construction requires that a statute be given cumulative effect with other statutes unless the statute provides otherwise or unless the statute conflicts with another statute. The general principle applies to the revised law. The omitted law reads:

(h) The powers granted to the district by this Act are cumulative of all powers granted by other laws that are by their terms applicable to the district.

(3) Section 4.16, V.A.C.S. Article 4477-7k, authorizes the board to charge a fee or require a deposit for providing facilities and services and authorizes the district to discontinue a facility or service for nonpayment of a fee or charge. The revised law omits the provision because it duplicates, in substance, Section 49.212, Water Code. The omitted law reads:

Sec. 4.16. (a) The board may adopt and enforce all necessary charges, fees, or rentals in addition to taxes for providing any district facilities or services.

(b) The board may require a deposit for any services or facilities furnished and may or may not provide that the deposit will bear interest.

(c) The board may discontinue a facility or service to prevent an abuse or enforce payment of an unpaid charge, fee, or rental due the district, including taxes that have been due for not less than six months.

[Sections 21.215-21.250 reserved for expansion]

SUBCHAPTER F. CONSTRUCTION, RENOVATION, AND REPAIR CONTRACTS

Revised Law

Sec. 21.251. AUTHORITY TO ENTER INTO CONSTRUCTION, RENOVATION, AND REPAIR CONTRACTS. The district may contract with any person to construct, renovate, repair, or make improvements to any district works, improvements, waste disposal, treatment, or other facilities, plants, pipelines, equipment, and appliances. (V.A.C.S. Art. 4477-7k, Sec. 4.06.)

Source Law

Sec. 4.06. The district may contract with any person to construct, renovate, or repair any of its works, improvements, waste disposal, treatment, or other facilities, plants, pipelines, equipment, and appliances and, from time to time, make improvements to them.

Revisor's Note

Section 4.06, V.A.C.S. Article 4477-7k, authorizes the district to make improvements to district facilities "from time to time." The revised law omits the quoted language because the power to take an action includes the power to act "from time to time."

Revised Law

Sec. 21.252. BIDS ON CONTRACTS OVER $15,000. The district may enter into a contract under Section 21.251 that requires an expenditure of more than $15,000 only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code. (V.A.C.S. Art. 4477-7k, Sec. 4.07.)

Source Law

Sec. 4.07. Contracts entered into under Section 4.06 of this Act requiring an expenditure of more than $15,000 may be made only after competitive bidding as provided by Subchapter B, Chapter 271, Local Government Code.

Revised Law

Sec. 21.253. CONTRACT SPECIFICATIONS, PLANS, AND DETAILS. A contract under Section 21.251 must contain, or have attached to it, the specifications, plans, and details for work included in the contract. The work shall be done according to the plans and specifications under the supervision of the district. (V.A.C.S. Art. 4477-7k, Sec. 4.08.)

Source Law

Sec. 4.08. A contract entered into under Section 4.06 of this Act must contain, or have attached to it, the specifications, plans, and details for work included in the contract, and work shall be done according to those plans and specifications under the supervision of the district.

Revised Law

Sec. 21.254. EXECUTION AND AVAILABILITY OF CONTRACTS. (a) A contract under Section 21.251 must be in writing and signed by:

(1) the contractor; and

(2) a district representative designated by the board.

(b) The contract shall be kept in the district's office and must be available for public inspection. (V.A.C.S. Art. 4477-7k, Sec. 4.09.)

Source Law

Sec. 4.09. (a) A contract entered into under Section 4.06 of this Act must be in writing and signed by the contractor and a representative of the district designated by the board.

(b) The contract shall be kept in the district's office and must be available for public inspection.

Revised Law

Sec. 21.255. CONTRACTOR'S BOND. (a) A contractor shall execute a bond:

(1) in an amount determined by the board, not to exceed the contract price;

(2) payable to the district and approved by the board; and

(3) conditioned on the faithful performance of the contract.

(b) The bond must provide that a contractor pay to the district all damages sustained as a result of the contractor's default on the contract.

(c) The bond shall be deposited in the district's depository. A copy of the bond shall be kept in the district's office. (V.A.C.S. Art. 4477-7k, Sec. 4.10.)

Source Law

Sec. 4.10. (a) A contractor shall execute a bond in an amount determined by the board, not to exceed the contract price, payable to the district and approved by the board, conditioned on the faithful performance of the obligations, agreements, and covenants of the contract.

(b) The bond must provide that if the contractor defaults on the contract, the contractor will pay to the district all damages sustained as a result of the default. The bond shall be deposited in the district's depository, and a copy of the bond shall be kept in the district's office.

Revisor's Note

Section 4.10(a), V.A.C.S. Article 4477-7k, requires a contractor to execute a bond "conditioned on the faithful performance of the obligations, agreements, and covenants of the contract," meaning those obligations, agreements, and covenants of a contract executed under Section 4.06, V.A.C.S. Article 4477-7k. The revised law substitutes for the quoted language "conditioned on the faithful performance of the contract." The performance of a contract is composed entirely of the performance of the obligations, agreements, and covenants of the contract.

Revised Law

Sec. 21.256. BOARD CONTROL AND DETERMINATION. (a) The board has control of construction, renovation, or repairs being done for the district under a contract under Section 21.251.

(b) The board shall determine whether the contract is being fulfilled. (V.A.C.S. Art. 4477-7k, Sec. 4.11(a).)

Source Law

Sec. 4.11. (a) The board has control of construction, renovation, or repairs being done for the district under a contract entered into under Section 4.06 of this Act and shall determine whether or not the contract is being fulfilled.

Revised Law

Sec. 21.257. INSPECTION OF WORK. (a) The board shall have the work contracted for under Section 21.251 inspected by engineers, inspectors, and personnel of the district.

(b) During the progress of the contracted work, the engineers, inspectors, and personnel shall submit to the board written reports that show whether the contractor is complying with the contract.

(c) On completion of the contracted work, the engineers, inspectors, and personnel shall submit to the board a final detailed written report that includes information necessary to show whether the contractor has fully complied with the contract. (V.A.C.S. Art. 4477-7k, Secs. 4.11(b), (c), (d).)

Source Law

Sec. 4.11. [(a) The board has control of construction, renovation, or repairs being done for the district under a contract entered into under Section 4.06 of this Act and shall determine whether or not the contract is being fulfilled.]

(b) The board shall have the construction, renovation, or repair work inspected by engineers, inspectors, and personnel of the district.

(c) During the progress of the work, the engineers, inspectors, and personnel doing the inspections shall submit to the board written reports that show whether or not the contractor is complying with the contract.

(d) On completion of construction, renovation, or repair work, the engineers, inspectors, and personnel shall submit to the board a final detailed written report including information necessary to show whether or not the contractor has fully complied with the contract.

Revised Law

Sec. 21.258. PAYMENTS FOR WORK. (a) The district shall pay the contract price of a construction, renovation, or repair contract in accordance with this section.

(b) The district shall make monthly progress payments under a contract as the work proceeds or at more frequent intervals as determined by the board.

(c) To provide a basis for determining progress payments, the contractor, on the request of the board, shall furnish, in the detail requested, an analysis of the total contract price showing the amount included for each principal category of the work.

(d) In making progress payments, the board shall retain 10 percent of the estimated amounts until final completion and acceptance of the contract work. The board may authorize any of the remaining progress payments to be made in full if:

(1) the board finds that satisfactory progress is being made; and

(2) at least 50 percent of the work has been completed.

(e) If the work under a contract is substantially complete and the board finds the amount retained to be in excess of the amount adequate for the protection of the district, the board may release to the contractor all or part of the excess amount.

(f) On completion and acceptance of each separate project, work, or other division of the contract on which the price is stated separately in the contract, payment may be made without retention of a percentage.

(g) When work is completed according to the contract, the board shall draw a warrant on the depository to pay any balance due on the contract. (V.A.C.S. Art. 4477-7k, Sec. 4.12.)

Source Law

Sec. 4.12. (a) The district shall pay the contract price of construction, renovation, or repair contracts in accordance with this section.

(b) The district shall make progress payments under contracts monthly as the work proceeds or at more frequent intervals as determined by the board.

(c) If requested by the board, the contractor shall furnish an analysis of the total contract price showing the amount included for each principal category of the work, in the detail requested, to provide a basis for determining progress payments.

(d) In making progress payments, 10 percent of the estimated amounts shall be retained until final completion and acceptance of the contract work. However, if the board, at any time after 50 percent of the work has been completed, finds that satisfactory progress is being made, it may authorize any of the remaining progress payments to be made in full. Also, if the work is substantially complete, the board, if it finds the amount retained to be in excess of the amount adequate for the protection of the district, may release to the contractor all or a portion of the excess amount.

(e) On completion and acceptance of each separate project, work, or other division of the contract on which the price is stated separately in the contract, payment may be made without retention of a percentage.

(f) When work is completed according to the terms of the contract, the board shall draw a warrant on the depository to pay any balance due on the contract.

[Sections 21.259-21.300 reserved for expansion]

SUBCHAPTER G. WASTE DISPOSAL

Revised Law

Sec. 21.301. ACQUISITION OF EXISTING FACILITIES. If the district acquires existing works, improvements, and waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances that are completed, partially completed, or under construction, the district may:

(1) assume the contracts and obligations of the previous owner; and

(2) perform the obligations of the previous owner in the same manner and to the same extent that any other purchaser or assignee would be bound. (V.A.C.S. Art. 4477-7k, Sec. 4.17.)

Source Law

Sec. 4.17. If the district acquires existing works, improvements, and waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances that are completed, partially completed, or under construction, the district may assume the contracts and obligations of the previous owner and perform the obligations of the previous owner in the same manner and to the same extent that any other purchaser or assignee would be bound.

Revised Law

Sec. 21.302. SOLID WASTE RECOVERY FACILITY. The district may construct or acquire and operate a facility used to store, handle, sort, bail, recycle, process, and recover solid waste. (V.A.C.S. Art. 4477-7k, Secs. 1.03(11), 4.18.)

Source Law

[Sec. 1.03]

(11) "Resource recovery facility" means a facility used to store, handle, sort, bail, recycle, process, and recover solid waste.

Sec. 4.18. The district may construct or acquire and operate solid waste resource recovery or recycling facilities.

Revised Law

Sec. 21.303. STANDARDS FOR SOLID WASTE HANDLING. (a) The district shall establish minimum standards of operation for all aspects of solid waste handling, including:

(1) storage;

(2) collection;

(3) incineration;

(4) recycling;

(5) sanitary landfill; and

(6) composting.

(b) Before establishing the standards, the district must:

(1) hold public hearings after giving public notice in the time and manner prescribed by board rule;

(2) consult with the commission to ensure that the standards are not inconsistent with established criteria; and

(3) find that the standards are reasonably necessary to protect the public health or welfare from water pollution or other harm to the environment.

(d) The board may adopt rules reasonably necessary to implement solid waste disposal standards. (V.A.C.S. Art. 4477-7k, Secs. 4.19(a), (b), (c), (d).)

Source Law

Sec. 4.19. (a) The district shall establish minimum standards of operation for all aspects of solid waste handling, including storage, collection, incineration, recycling, sanitary landfill, and composting.

(b) Before establishing the standards, the district shall:

(1) hold public hearings after giving public notice in the time and manner prescribed by board rule;

(2) consult with the commission, the Texas Air Control Board, and the department to ensure that the standards are not inconsistent with established criteria; and

(3) find that the standards are reasonably necessary to protect the public health or welfare from water pollution or other environment harm.

(d) The district may make rules reasonably necessary to implement solid waste disposal standards.

Revisor's Note

Section 4.19(b)(2), V.A.C.S. Article 4477-7k, refers to the "commission" (that is, the former Texas Water Commission, subsequently renamed the Texas Commission on Environmental Quality) and to the "Texas Air Control Board." The revised law omits the reference to the Texas Air Control Board because subsequent legislation abolished the agency and assigned its powers and duties to the Texas Commission on Environmental Quality. See Chapter 3, Acts of the 72nd Legislature, 1st Called Session, 1991, which abolished the agency and transferred its powers and duties to the former Texas Natural Resource Conservation Commission, and Revisor's Note (1) to Section 21.001.

Revised Law

Sec. 21.304. MANAGEMENT OF MUNICIPAL SOLID WASTE. (a) The district may assume the exclusive authority to exercise the powers granted to a county under Section 361.165, Health and Safety Code, including the power to issue licenses and exercise municipal solid waste management authority.

(b) If the district exercises the licensing authority granted under this section, the district must adopt and enforce rules for the management of municipal solid waste.

(1) compatible with and at least as stringent as those of the commission; and

(2) approved by the commission. (V.A.C.S. Art. 4477-7k, Sec. 4.19(e).)

Source Law

(e) The district may assume the exclusive authority to exercise the powers granted to a county under Section 361.165, Health and Safety Code, including the power to issue licenses and exercise municipal solid waste management authority. If the district elects to exercise the licensing authority granted under this subsection, it must adopt and enforce rules for the management of municipal solid waste. The rules must be compatible with and at least as stringent as those of the department and must be approved by the department.

Revised Law

Sec. 21.305. ON-SITE SEWAGE DISPOSAL SYSTEMS. (a) The district may apply to the commission for designation as an authorized agent to implement and enforce on-site sewage disposal rules under Chapter 366, Health and Safety Code.

(b) If the district finds that due to the nature of the soil or drainage in the area it is necessary to prevent water pollution that may injure the public health, the board by rule may:

(1) provide limits on the number and kind of septic tanks in an area defined by the rule;

(2) prohibit the use of septic tanks in the area; or

(3) prohibit the installation of new septic tanks in the area.

(d) The board may not adopt a rule under Subsection (b) without first holding a public hearing in the area to be affected by the rule.

(e) The board by order may provide for a gradual and systematic reduction of the number or kind of septic tanks in the area and, by rule, may provide for a system to license and issue permits for the installation of new septic tanks in the area affected. If the board adopts a license and permit system, a person may not install a septic tank in the area without a license or permit from the board. (V.A.C.S. Art. 4477-7k, Sec. 4.20.)

Source Law

Sec. 4.20. (a) The district may apply to the department for designation as an authorized agent to implement and enforce on-site sewage disposal rules under Chapter 366, Health and Safety Code.

(b) If the district finds that due to the nature of the soil or drainage in the area it is necessary to prevent water pollution that may injure the public health, the board by rule may:

(1) provide limits on the number and kind of septic tanks in an area defined by the rule;

(2) prohibit the use of septic tanks in the area; or

(3) prohibit the installation of new septic tanks in the area.

(c) The board shall consult with the department and the commission before the adoption of a rule under Subsection (b) of this section.

(d) The board may provide in the order for a gradual and systematic reduction of the number or kind of septic tanks in the area and, by rule, may provide for a system of licensing and issuing permits for the installation of new septic tanks in the area affected, in which event a person may not install septic tanks in the area without a license or permit from the board.

(e) The board may not issue a rule under Subsection (b) of this section without first holding a public hearing in the area to be affected by the rule.

Revised Law

Sec. 21.306. ACQUISITION, CONSTRUCTION, AND OPERATION OF DISPOSAL SYSTEMS. The district may:

(1) acquire and provide by purchase, gift, or lease a disposal system in the district or in a county adjacent to the district;

(2) construct and provide a disposal system in the district or in a county adjacent to the district;

(3) operate or sell a disposal system that it constructs or acquires;

(4) contract with a person to operate and maintain a disposal system belonging to the person; and

(5) contract with a person to train or supervise employees of a disposal system. (V.A.C.S. Art. 4477-7k, Secs. 1.03(9), 4.21.)

Source Law

[Sec. 1.03]

(9) "Outside the district" means the area contained in counties adjacent to the district.

Sec. 4.21. The district may:

(1) acquire and provide by purchase, gift, or lease any disposal systems inside or outside the district;

(2) construct and provide disposal systems inside or outside the district;

(3) operate and sell any disposal systems that it constructs or acquires;

(4) contract with a person to operate and maintain a disposal system belonging to the person; and

(5) contract with a person to train or supervise employees of a disposal system.

Revised Law

Sec. 21.307. WASTE DISPOSAL CONTRACTS. (a) The district may contract to receive and to treat or dispose of waste from a person in the district.

(b) The district shall set fees in the contract after considering:

(1) the quality of the waste;

(2) the quantity of the waste;

(3) the difficulty encountered in treating or disposing of the waste;

(4) operation and maintenance expenses and debt retirement services; and

(5) any other reasonable consideration. (V.A.C.S. Art. 4477-7k, Sec. 4.22.)

Source Law

Sec. 4.22. (a) The district may contract to receive and to treat or dispose of waste from a person in the district.

(b) The district shall set fees in a contract under Subsection (a) of this section after considering:

(1) the quality of the waste;

(2) the quantity of the waste;

(3) the difficulty encountered in treating or disposing of the waste;

(4) operation and maintenance expenses and debt retirement services; and

(5) any other reasonable considerations.

[Sections 21.308-21.350 reserved for expansion]

SUBCHAPTER H. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 21.351. ACCOUNTING. The district shall keep complete and accurate accounts of its business transactions in accordance with generally accepted methods of accounting. (V.A.C.S. Art. 4477-7k, Sec. 3.14(a).)

Source Law

Sec. 3.14. (a) The district shall keep complete and accurate accounts of its business transactions in accordance with generally accepted methods of accounting.

Revised Law

Sec. 21.352. ANNUAL BUDGET. (a) The district's annual budget must contain a complete financial statement, including a statement of:

(1) the outstanding district obligations;

(2) the amount of cash on hand to the credit of each district fund;

(3) the amount of money received by the district from all sources during the previous year;

(4) the amount of money available to the district from all sources during the ensuing year;

(5) the amount of the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated amount of revenue and balances available to cover the proposed budget; and

(7) the estimated tax rate that will be required.

(b) The board may amend the budget after adoption.

(c) The district may not spend money for an expense not included in the annual budget or an amendment to it unless the board by order declares the expense to be necessary. (V.A.C.S. Art. 4477-7k, Secs. 5.03(b), 5.04, 5.05.)

Source Law

[Sec. 5.03]

(b) The budget shall contain a complete financial statement, including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand to the credit of each fund of the district;

(3) the amount of money received by the district from all sources during the previous year;

(4) the amount of money available to the district from all sources during the ensuing year;

(5) the amount of the balances expected at the end of the year in which the budget is being prepared;

(6) the estimated amount of revenues and balances available to cover the proposed budget; and

(7) the estimated tax rate that will be required.

Sec. 5.04. After adoption, the annual budget may be amended on the board's approval.

Sec. 5.05. Money may not be spent for an expense not included in the annual budget or an amendment to it unless the board by order declares the expense to be necessary.

Revisor's Note

Section 5.03(a), V.A.C.S. Article 4477-7k, requires the district to prepare and approve an annual budget. The revised law omits the provision because it duplicates, in substance, part of Section 49.057(b), Water Code. The omitted law reads:

Sec. 5.03. (a) The board shall prepare and approve an annual budget for the district.

Revised Law

Sec. 21.353. SWORN STATEMENT REGARDING MONEY AND DISBURSEMENTS. As soon as practicable after the close of the fiscal year, the district treasurer shall prepare for the board a sworn statement of:

(1) the amount of money that belongs to the district; and

(2) an account of the disbursement of that money. (V.A.C.S. Art. 4477-7k, Sec. 5.06.)

Source Law

Sec. 5.06. As soon as practicable after the close of the fiscal year, the treasurer of the district shall prepare for the board a sworn statement of the amount of money that belongs to the district and an account of the disbursements of that money.

Revised Law

Sec. 21.354. DEPOSITORY. (a) The board shall name one or more banks to serve as depository for the district's money.

(b) District money, other than money transmitted to a bank for payment of bonds issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

(c) Before the district deposits money in a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank must execute a bond or provide other security in an amount sufficient to secure from loss the amount of the district's deposits that exceed the amount secured by the Federal Deposit Insurance Corporation.

(d) This section does not limit the board's power to invest the district's money as provided by Subchapter A, Chapter 2256, Government Code. (V.A.C.S. Art. 4477-7k, Sec. 5.07.)

Source Law

Sec. 5.07. (a) The board shall name one or more banks to serve as depository for district funds.

(b) District funds, other than those transmitted to a bank for payment of bonds issued by the district, shall be deposited as received with the depository bank and must remain on deposit. This section does not limit the power of the board to invest the district's funds as provided by Section 5.08 of this Act.

(c) Before the district deposits funds in a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank must execute a bond or provide other security in an amount sufficient to secure from loss the district's funds that exceed the amount secured by the Federal Deposit Insurance Corporation.

Revisor's Note

Section 5.07(b), V.A.C.S. Article 4477-7k, states that the section does not limit the power of the board to invest district money as provided by "Section 5.08 of this Act." For the quoted language, the revised law substitutes a reference to Subchapter A, Chapter 2256, Government Code, the applicable law that reflects the substance of Section 5.08. See the revisor's note to Section 21.355.

Revised Law

Sec. 21.355. INVESTMENTS. (a) The board may place district money in a certificate of deposit of a state or national bank or a state or federal savings and loan association in this state if the money is secured in the manner required for the security of county funds.

(b) The board by resolution may provide that an authorized representative may invest and reinvest district money and provide for money to be withdrawn from the appropriate district accounts for investments on terms the board considers advisable. (V.A.C.S. Art. 4477-7k, Secs. 5.08(b), (c).)

Source Law

(b) Funds of the district may be placed in certificates of deposit of state or national banks or state or federal savings and loan associations within the state provided that funds are secured in the manner required for the security of the funds of counties of the state.

(c) The board by resolution may provide that an authorized representative of the district may invest and reinvest the funds of the district and provide for money to be withdrawn from the appropriate accounts of the district for investments on terms the board considers advisable.

Revisor's Note

Section 5.08(a), V.A.C.S. Article 4477-7k, specifies allowable investments for district money. The revised law omits the provision because it duplicates Subchapter A, Chapter 2256, Government Code, the Public Funds Investment Act, which is the 1993 codification of the Public Funds Investment Act of 1987. The revised law omits a reference to the 1987 act because Subchapter A, Chapter 2256, applies on its own terms to the district, which is a "local government" under Section 2256.002, Government Code. The references to Articles 836 and 837, Revised Statutes, are omitted from the revised law because those statutes were impliedly repealed by the Public Funds Investment Act and explicitly repealed by Section 28(a), Chapter 227, Acts of the 76th Legislature, Regular Session, 1999. The omitted law reads:

Sec. 5.08. (a) Funds of the district may be invested and reinvested by the board or its authorized representative in those investments specified by Article 836 or 837, Revised Statutes, or the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's Texas Civil Statutes).

Revised Law

Sec. 21.356. PAYMENT OF EXPENSES. (a) The board may pay:

(1) costs and expenses necessarily incurred in the district's operation;

(2) legal fees; and

(3) other incidental expenses.

(b) The board may reimburse a person for money advanced for a payment described by Subsection (a).

(c) A payment may be made from the proceeds of district bonds, taxes, or fees or from other district revenue. (V.A.C.S. Art. 4477-7k, Sec. 5.09.)

Source Law

Sec. 5.09. (a) The district's directors may pay all costs and expenses necessarily incurred in the creation, organization, and operation of the district, legal fees, and other incidental expenses and may reimburse any person for money advanced for those purposes.

(b) Payments may be made from money obtained from the sale of bonds issued by the district or out of taxes, fees, or other revenues of the district.

Revisor's Note

Section 5.09(a), V.A.C.S. Article 4477–7k, permits the board to pay costs and expenses incurred in the district's creation and organization. Because the district was created in 1991 the revised law omits the language as executed.

Revised Law

Sec. 21.357. BORROWING MONEY. The district may borrow money for any purpose authorized by this chapter. (V.A.C.S. Art. 4477-7k, Sec. 5.10.)

Source Law

Sec. 5.10. The district may borrow money for any purpose authorized under this Act or any combination of those purposes.

Revised Law

Sec. 21.358. PAYMENT OF JUDGMENTS. A court of this state that renders a money judgment against the district may require the board to pay the judgment from money in the district depository that is not dedicated to the payment of any district debt. (V.A.C.S. Art. 4477-7k, Sec. 3.17(c).)

Source Law

(c) A court of this state that renders a money judgment against the district may require the board to pay the judgment from money in the district depository that is not dedicated to the payment of any indebtedness of the district.

Revisor's Note

(End of Subchapter)

(1) Sections 3.17(a) and (b), V.A.C.S. Article 4477-7k, authorize the district to sue and be sued, provide that service of process on the district may be had by serving the district's general manager, and require courts to take judicial notice of the district. The revised law omits the provisions because they duplicate Sections 49.066(a) and (c), Water Code. The omitted law reads:

Sec. 3.17. (a) The district may, through its board, sue and be sued in any court of this state in the name of the district. Service of process in a suit may be had by serving the general manager.

(b) The courts of this state shall take judicial notice of the creation of the district.

(2) Section 5.01, V.A.C.S. Article 4477-7k, states that the district operates on the fiscal year adopted by the board and that the board may not change the fiscal year more than once in a 24-month period. The revised law omits the provision because it duplicates, in substance, Section 49.158, Water Code. The omitted law reads:

Sec. 5.01. (a) The district operates on the fiscal year established by the board.

(b) The fiscal year may not be changed more than once in a 24-month period.

(3) Section 5.02, V.A.C.S. Article 4477-7k, requires the board to conduct an annual audit. The revised law omits the provision because it duplicates, in substance, Section 49.191(a), Water Code. The omitted law reads:

Sec. 5.02. Annually, the board shall have an audit made of the financial condition of the district.

[Sections 21.359-21.400 reserved for expansion]

SUBCHAPTER I. BONDS

Revised Law

Sec. 21.401. AUTHORITY TO ISSUE BONDS. The board may issue and sell bonds in the district's name to acquire land and construct works, improvements, and waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances as provided by this chapter. (V.A.C.S. Art. 4477-7k, Sec. 6.01.)

Source Law

Sec. 6.01. The board may issue and sell bonds in the name of the district to acquire land and construct works, improvements, and waste disposal, treatment, and other facilities, plants, pipelines, equipment, and appliances as provided by this Act.

Revised Law

Sec. 21.402. BOND PAYMENT. The board may provide for the payment of the principal of and interest on the bonds:

(1) from the imposition of property taxes on all taxable property in the district;

(2) by pledging all or part of the designated revenue from the ownership or operation of the district's works, improvements, and facilities; or

(3) from a combination of the sources listed by Subdivisions (1) and (2). (V.A.C.S. Art. 4477-7k, Sec. 6.02.)

Source Law

Sec. 6.02. The board may provide for the payment of the principal of and interest on the bonds:

(1) from the levy and collection of property taxes on all taxable property within the district;

(2) by pledging all or part of the designated revenues from the ownership or operation of the district's works, improvements, and facilities; or

(3) from a combination of the sources listed by Subdivisions (1) and (2) of this section.

Revisor's Note

Section 6.02, V.A.C.S. Article 4477-7k, states that district bonds may be payable from the "levy and collection" of a property tax. Throughout this chapter, the revised law substitutes "impose" for "levy" or when used together, "levy and collection" or "levy and collect," because "impose" is the term generally used in Title 1, Tax Code, and includes the levying and collection of a tax.

Revised Law

Sec. 21.403. BOND ELECTION. (a) The district may not issue bonds until the issuance is approved by a majority of voters voting in the district at an election held for that purpose.

(b) The board may order a bond election. The order calling the election must state:

(1) the hours during which the polls will be open;

(2) the location of the polling places;

(3) the amount of bonds to be authorized; and

(4) the maximum maturity of the bonds.

(c) At an election to authorize bonds, the ballot must be printed to provide for voting for or against the issuance of bonds and the imposition of property taxes for payment of the bonds.

(d) If a majority of the votes cast at the election favor the issuance of the bonds, the bonds may be issued by the board. If a majority of the votes cast at the election do not favor issuance of the bonds, the bonds may not be issued. (V.A.C.S. Art. 4477-7k, Secs. 6.03(a), (b), (d), (e) (part).)

Source Law

Sec. 6.03. (a) Bonds may not be issued by the district until authorized by a majority vote of individuals qualified to vote and actually voting in the area within the boundaries of the district at an election called and held for that purpose.

(b) The board may order a bond election. The order calling the election must state the nature and the date of the election, the hours during which the polls will be open, the location of the polling places, the amount of bonds to be authorized, and the maximum maturity of the bonds.

(d) At an election to authorize bonds, the ballot must be printed to provide for voting for or against the issuance of bonds and the levy of property taxes for payment of the bonds.

(e) … If a majority of the votes cast at the election favor the issuance of the bonds, the bonds may be issued by the board, but if a majority of the votes cast at the election do not favor issuance of the bonds, the bonds may not be issued.

Revisor's Note

(1) Section 6.03(a), V.A.C.S. Article 4477-7k, permits the district to issue bonds if the issuance is authorized by a majority of "individuals qualified to vote and actually voting" in the district. The revised law omits the reference to "qualified" voters because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters who are residents of the territory covered by the election to vote in an election. The revised law also omits "actually" because "voting" means "actually voting."

(2) Section 6.03(a), V.A.C.S. Article 4477-7k, provides that the district may issue bonds if authorized at an election "called and held" for the purpose of authorizing the issuance of bonds. The revised law omits "called" because, in this context, a "called" election is included in the meaning of a "held" election. Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

(3) Section 6.03(b), V.A.C.S. Article 4477-7k, provides that the election order shall state "the nature and the date of the election." The revised law omits this provision because it duplicates, in substance, Section 3.006, Election Code.

(4) Section 6.03(c), V.A.C.S. Article 4477-7k, requires the district to give notice of a bond election in the manner provided by the Election Code. The revised law omits the provision because the notice provisions under Chapter 4, Election Code, apply to the district under Section 1.002, Election Code. The omitted law reads:

(5) Section 6.03(e), V.A.C.S. Article 4477-7k, requires the board to canvass the returns and declare the results of the election. The revised law omits the provision because it duplicates requirements of Chapter 67, Election Code. The omitted law reads:

(e) The board shall canvass the returns and declare the results of the election… .

Revised Law

Sec. 21.404. MATURITY OF BONDS. District bonds may mature not more than 50 years after the date of issuance. (V.A.C.S. Art. 4477-7k, Sec. 6.04(b) (part).)

Source Law

(b) Bonds may mature serially or otherwise not more than 50 years after the date of issuance and … .

Revisor's Note

Section 6.04(b), V.A.C.S. Article 4477-7k, provides that district bonds may mature "serially or otherwise." The revised law omits the quoted language because it duplicates Section 1201.022(a)(1), Government Code, applicable to the revised law by application of Section 1201.002, Government Code.

Revised Law

Sec. 21.405. SIGNATURE. District bonds must be signed and executed as provided by the board in the resolution or order authorizing the bonds. (V.A.C.S. Art. 4477-7k, Sec. 6.04(d) (part).)

Source Law

(d) The district's bonds … shall be signed and executed as provided by the board in the resolution or order authorizing the bonds.

Revised Law

Sec. 21.406. BOND PROVISIONS. (a) In an order or resolution authorizing the issuance of bonds, including refunding bonds, the board may:

(1) provide for the flow of money;

(2) provide for the establishment and maintenance of an interest and sinking fund, a reserve fund, and other funds; and

(3) prohibit the further issuance of bonds or other obligations payable from the pledged fees or reserve the right to issue additional bonds to be secured by a pledge of and payable from the pledged fees on a parity with or subordinate to the pledge in support of the bonds being issued; and

(4) provide for other provisions as the board determines.

(b) The board may adopt and have executed any other proceeding or instrument necessary and convenient in the issuance of bonds. (V.A.C.S. Art. 4477-7k, Sec. 6.05.)

Source Law

Sec. 6.05. (a) In the orders or resolutions authorizing the issuance of bonds, including refunding bonds, the board may provide for the flow of funds, the establishment and maintenance of the interest and sinking fund, the reserve fund, and other funds and may make additional covenants with respect to the bonds and the pledged fees.

(b) The orders or resolutions of the board authorizing the issuance of bonds may prohibit the further issuance of bonds or other obligations payable from the pledged fees or may reserve the right to issue additional bonds to be secured by a pledge of and payable from the fees on a parity with or subordinate to the pledge in support of the bonds being issued.

(c) The orders or resolutions of the board issuing bonds may contain other provisions and covenants as the board may determine.

(d) The board may adopt and have executed any other proceedings or instruments necessary and convenient in the issuance of bonds.

Revisor's Note

Section 6.05(c), V.A.C.S. Article 4477-7k, refers to "provisions and covenants" of a board order or resolution. The revised law omits "covenants" because in this context it is included in the meaning of "provisions."

Revised Law

Sec. 21.407. MANDAMUS BY BONDHOLDERS. A holder of a district bond is entitled, in addition to any other right or remedy provided by law, to a writ of mandamus requiring the district and its officials to observe and perform any covenant, condition, or obligation provided by the order or resolution authorizing issuance of the bond that the district fails to observe or perform, including:

(1) a default in the payment of principal, interest, or redemption price on the bond when due; and

(2) a failure to make payment into any fund created in the order or resolution. (V.A.C.S. Art. 4477-7k, Sec. 6.09.)

Source Law

Sec. 6.09. In addition to all other rights and remedies provided by law, if the district defaults in the payment of principal, interest, or redemption price on its bonds when due or if it fails to make payments into any fund or funds created in the orders or resolutions authorizing the issuance of the bonds or defaults in the observation or performance of any other covenants, conditions, or obligations set forth in the orders or resolutions authorizing the issuance of its bonds, the owners of any of the bonds are entitled to a writ of mandamus issued by a court of competent jurisdiction compelling and requiring the district and its officials to observe and perform the covenants, obligations, or conditions prescribed in the orders or resolutions authorizing the issuance of the district's bonds.

Revisor's Note

(1) Section 6.09, V.A.C.S. Article 4477-7k, refers to a writ of mandamus issued by "a court of competent jurisdiction." The revised law omits the quoted language because such a writ may only be issued by a court, and the general laws of civil jurisdiction determine which courts have jurisdiction over the matter.

(2) Section 6.09, V.A.C.S. Article 4477-7k, refers to "compelling and requiring" certain actions. The reference to "compelling" is omitted from the revised law because "compelling" is included within the meaning of "requiring."

Revised Law

Sec. 21.408. REFUNDING BONDS. (a) The board may issue refunding bonds to refund outstanding indebtedness issued or assumed by the district.

(b) A refunding bond may be:

(1) sold, with the proceeds of the refunding bond applied to the payment of the bonds to be refunded; or

(2) exchanged wholly or partly for not less than a similar principal amount of outstanding indebtedness. (V.A.C.S. Art. 4477-7k, Secs. 6.07(a), (c) (part).)

Source Law

Sec. 6.07. (a) Refunding bonds of the district may be issued to refund and pay off an outstanding indebtedness the district has issued or assumed.

(c) The refunding bonds may be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness… .

Revisor's Note

Sections 6.07(b) and (c), V.A.C.S. Article 4477-7k, require the district to issue refunding bonds in the manner prescribed by Article 717k-3 (Vernon's Texas Civil Statutes), and, for refunding bonds that will be sold, to issue the bonds and to make payments on the bonds in the manner prescribed by Article 717k (Vernon's Texas Civil Statutes). Articles 717k and 717k-3 were codified in 1999 as Chapter 1207, Government Code. The revised law omits the provisions because Chapter 1207, Government Code, applies to the district by its own terms under Section 1207.001, Government Code. The omitted law reads:

(b) The bonds must be issued in the manner provided by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil Statutes).

(c) … If the refunding bonds are to be sold and the proceeds applied to the payment of outstanding indebtedness, the refunding bonds must be issued and payments made in the manner provided by Chapter 503, Acts of the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas Civil Statutes).

Revised Law

Sec. 21.409. TAX EXEMPTION. District bonds, transactions relating to the bonds, and profits made in the sale of the bonds are exempt from state taxation or taxation by a municipality, county, special district, or other political subdivision of the state. (V.A.C.S. Art. 4477-7k, Sec. 7.01 (part).)

Source Law

Sec. 7.01. … bonds issued by the district, any transaction relating to the bonds, and profits made in the sale of the bonds are free from taxation by the state or by a municipality, county, special district, or other political subdivision of the state.

Revisor's Note

(End of Subchapter)

(1) Section 6.04(a), V.A.C.S. Article 4477-7k, permits the district to issue bonds in various series or issues. The revised law omits the provision because it duplicates Section 1201.022(a)(1), Government Code, which applies to the revised law under Section 1201.003, Government Code. The omitted law reads:

Sec. 6.04. (a) The district may issue its bonds in various series or issues.

(2) Sections 6.04(b) and (d), V.A.C.S. Article 4477-7k, outline permissible characteristics of district bonds. The revised law omits the provisions because those characteristics are included in Section 1201.021, Government Code, which applies to district bonds under Section 1201.002, Government Code. The omitted law reads:

(b) [Bonds] … shall bear interest at a rate permitted by state law.

(d) [The district's bonds] may be issued in the form, denominations, and manner and under the terms, conditions, and details and … [as provided by the board in the resolution or order authorizing the bonds].

(3) Section 6.04(c), V.A.C.S. Article 4477-7k, states that district bonds are investment securities under the terms of Chapter 8, Business & Commerce Code. The revised law omits the provision because it duplicates Section 1201.041(2), Government Code, which applies to district bonds under Section 1201.002, Government Code. The omitted law reads:

(c) The district's bonds and interest coupons, if any, are investment securities under the terms of Chapter 8, Business & Commerce Code, and … .

(4) Section 6.04(c), V.A.C.S. Article 4477-7k, provides that district bonds may be registered as to principal or as to principal and interest. The revised law omits the provision because it duplicates Section 1201.024, Government Code, which applies to district bonds under Section 1201.002, Government Code. The omitted law reads:

(5) Section 6.04(c), V.A.C.S. Article 4477-7k, provides that district bonds may be issued in book entry form. The revised law omits the provision because it duplicates Section 1201.023(a), Government Code, which applies to district bonds under Section 1201.002, Government Code. The omitted law reads:

(6) Section 6.04(c), V.A.C.S. Article 4477-7k, provides that the obligations may be made redeemable before maturity or may contain a mandatory redemption provision. The revised law omits the provision because it duplicates Section 1201.021, Government Code, which provides that a public security may be redeemed before maturity at one or more specified times. The omitted law reads:

(c) … may be made redeemable before maturity at the option of the district or may contain a mandatory redemption provision.

(7) Section 6.06(a), V.A.C.S. Article 4477-7k, requires the district to deliver bonds it issues to the attorney general for examination and approval. The revised law omits that provision because it duplicates Section 1202.003, Government Code. That section applies to district bonds under Section 1202.001, Government Code. The omitted law reads:

Sec. 6.06. (a) Bonds issued by the district and the records relating to their issuance must be submitted to the attorney general for examination as to their validity.

(8) Section 6.06(b), V.A.C.S. Article 4477-7k, provides that after approval by the attorney general district bonds shall be registered by the comptroller. The revised law omits that provision because it duplicates Sections 1202.003 and 1202.005, Government Code. Those sections apply to district bonds under Section 1202.001, Government Code. The omitted law reads:

(b) If the attorney general finds that the bonds have been authorized in accordance with the law, the attorney general shall approve them, and the comptroller of public accounts shall register the bonds.

(9) Section 6.06(c), V.A.C.S. Article 4477-7k, provides that after approval and registration district bonds and any contract, the proceeds of which are pledged to the payment of the bonds, are incontestable. The revised law omits that provision because it duplicates a provision of Section 1202.006, Government Code. That section applies to district bonds under Section 1202.001, Government Code. The omitted law reads:

(c) Following approval and registration, the bonds are incontestable and are binding obligations according to their terms.

(10) Section 6.08(a), V.A.C.S. Article 4477-7k, lists the entities for which district bonds are legal and authorized investments. The revised law omits the list because it duplicates Section 49.186, Water Code. While Section 6.08(a), V.A.C.S. Article 4477-7k, lists "guardians," and Section 49.186, Water Code, does not, Section 49.186 includes "fiduciaries," and a guardian is a fiduciary. The omitted law reads:

Sec. 6.08. (a) District bonds are legal and authorized investments for:

(1) a bank;

(2) a savings bank;

(3) a trust company;

(4) a savings and loan association;

(5) an insurance company;

(6) a fiduciary;

(7) a trustee;

(8) a guardian; and

(9) the sinking fund of a municipality, county, school district, or other political subdivision of the state and other public funds of the state and its agencies, including the permanent school fund.

(11) Section 6.08(b), V.A.C.S. Article 4477-7k, provides that district bonds may secure deposits of public funds of the state or its political subdivisions. The revised law omits that provision because it is impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for the comptroller's deposits of state funds, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions. The omitted law reads:

(b) District bonds may secure deposits of public funds of the state or a municipality, county, school district, or other political subdivision of the state. The bonds are lawful and sufficient security for deposits to the extent of their value, if accompanied by all unmatured coupons.

(12) Section 6.10, V.A.C.S. Article 4477-7k, states that district bonds are considered bonds under the Bond Procedures Act of 1981. The revised law omits the provision because the Bond Procedures Act (Article 717k-6, Vernon's Texas Civil Statutes), revised in 1999 as Chapter 1201, Government Code, applies to district bonds on its own terms under Section 1201.002, Government Code. The omitted law reads:

Sec. 6.10. Bonds of the district are considered bonds under the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes).

[Sections 21.410-21.450 reserved for expansion]

SUBCHAPTER J. TAXES

Revised Law

Sec. 21.451. AUTHORITY TO IMPOSE PROPERTY TAXES. The board annually may impose a tax on all property in the district subject to district taxation. (V.A.C.S. Art. 4477-7k, Secs. 7.02(a) (part), 7.03(b).)

Source Law

Sec. 7.02. (a) The board may annually levy taxes in the district … .

[Sec. 7.03]

(b) The board shall levy taxes on all property within the boundaries of the district subject to district taxation.

Revised Law

Sec. 21.452. AMOUNT OF TAX. (a) The amount of tax imposed by the board must be in an amount necessary to pay:

(1) the principal of and interest on district bonds; and

(2) the expense of assessing and collecting taxes.

(b) The district may impose a maintenance and operating tax in an amount not to exceed three cents on each $100 of assessed valuation of property in the district to pay the district's maintenance and operating expenses. (V.A.C.S. Art. 4477-7k, Sec. 7.02 (part).)

Source Law

Sec. 7.02. (a) [The board may annually levy taxes in the district] in an amount necessary to pay the principal of and interest on bonds issued by the district and the expense of assessing and collecting taxes.

(b) The district may levy and collect a maintenance and operating tax in an amount not to exceed three cents on each $100 of assessed valuation of property in the district to pay maintenance and operating expenses of the district.

Revised Law

Sec. 21.453. TAX RATE. In setting the tax rate, the board shall take into consideration the income of the district from sources other than taxation. (V.A.C.S. Art. 4477-7k, Sec. 7.04 (part).)

Source Law

Sec. 7.04. In setting the tax rate, the board shall take into consideration the income of the district from sources other than taxation… .

Revisor's Note

Section 7.04, V.A.C.S. Article 4477-7k, requires the board to certify the tax amount to the tax assessor-collector. The revised law omits that provision because Section 26.01, Tax Code, requires the chief appraiser of an appraisal district to certify to the tax assessor of each taxing unit that has property in the appraisal district an appraisal roll that lists the properties taxable by that taxing unit and the value of those properties. The omitted law reads:

Sec. 7.04. … On determination of the amount of tax required to be levied, the board shall make the levy and certify it to the tax collector.

Revised Law

Sec. 21.454. TAX COLLECTOR. The board may:

(1) provide for the appointment of a tax collector for the district; or

(2) contract for the collection of taxes as provided by the Tax Code. (V.A.C.S. Art. 4477-7k, Sec. 7.05(b).)

Source Law

(b) The board may provide for the appointment of a tax collector for the district or may contract for the collection of taxes as provided by the Tax Code.

Revisor's Note

(End of Subchapter)

(1) Section 7.03(a), V.A.C.S. Article 4477-7k, authorizes the board to impose a tax in the district's initial year. The revised law omits this provision as executed. The omitted law reads:

Sec. 7.03. (a) The board may levy taxes for the entire year in which the district is created.

(2) Section 7.05(a), V.A.C.S. Article 4477-7k, provides that the Tax Code governs the appraisal, assessment, and collection of district taxes. The revised law omits this provision because Section 1.02, Tax Code, requires all taxing units of government to administer the assessment and collection of ad valorem taxes in conformity with Title 1, Tax Code. The omitted law reads:

Sec. 7.05. (a) The Tax Code governs the appraisal, assessment, and collection of district taxes.

Revisor's Note

(End of Chapter)

(1) Sections 2.03, 2.04, 2.05, 2.06, and 2.07, V.A.C.S. Article 4477-7k, contain provisions regarding the appointment of a temporary board to serve until permanent directors have been appointed and procedures for a district confirmation and tax election. The revised law omits the provisions as executed. The omitted law reads:

Sec. 2.03. (a) On or after the effective date of this Act, the commissioners court of each county included in the proposed district shall each appoint two persons to serve as temporary directors of the district.

(b) Members of the temporary board serve until the persons selected as directors under Section 3.06 of this Act have been appointed and have qualified for office.

Sec. 2.04. (a) The temporary directors shall call and hold a separate election in each county within the boundaries of the proposed district to determine if the proposed district will be created and a tax authorized. The elections shall be held on the same day and within six months of the effective date of this Act.

(b) Section 41.001(a), Election Code, does not apply to a confirmation and tax election held under this section.

Sec. 2.05. (a) Notice of the confirmation and tax elections shall state the day and places for holding the elections and the proposition to be voted on.

(b) The temporary board shall publish the notice of the elections one time in one or more newspapers of general circulation in the proposed district. The notice must be published before the 35th day before the date set for the elections.

Sec. 2.06. The ballot for the elections shall be printed to permit voting for or against the proposition: "The creation of the Upper Sabine Valley Solid Waste Management District and the levy of a maintenance and operating tax in an amount not to exceed three cents on each $100 valuation."

Sec. 2.07. (a) Immediately after the confirmation and tax elections, the presiding judge of each polling place shall deliver returns of the elections to the temporary board, and the temporary board shall canvass the returns and declare the results.

(b) If a majority of the votes cast at the election in one or more counties favor creation of the district, the board shall declare the district created and shall enter the results in its minutes. If the election results are favorable in one or more counties, but not in all counties, the temporary directors shall set the boundaries of the district to include only the counties in which the vote was favorable. If a majority of the votes cast at each election are against the creation of the district, the board shall declare that the creation of the district was defeated and shall enter the results in its minutes. The board shall file a copy of the election results with the commission.

(c) If a majority of the voters in each county vote against the creation of the district, the board may call and hold additional confirmation and tax elections, but another election to confirm creation of the district may not be called and held by the board before the first anniversary of the most recent confirmation and tax elections. If the creation of the district is not confirmed on or before the fifth anniversary of the effective date of this Act, this Act expires.

(2) Sections 3.06(a) and (c), V.A.C.S. Article 4477-7k, outline procedures for the board's first meeting. Section 3.08(c), V.A.C.S. Article 4477-7k, refers to a bond for a treasurer elected under Section 3.06(a). The revised law omits the provisions as executed. The omitted law reads:

Sec. 3.06. (a) As soon as possible after all directors have been appointed and have qualified, the county judge of the county included in the district that has the largest population shall call a meeting of the board and shall preside at the meeting until the directors have elected from the board's membership a chairman, a vice-chairman, a secretary, and a treasurer.

(c) At the initial meeting, the directors shall draw lots so that one-half of the initial directors serve four-year terms that begin on the date on which the initial meeting is held, and one-half of the directors serve two-year terms that begin on that date.

[Sec. 3.08]

(c) The person elected as treasurer under Section 3.06(a) of this Act shall execute a bond in the amount determined by the board, payable to the district, and conditioned on the faithful performance of the treasurer's duties. The district shall pay for the bond.


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This web page is published by the Texas Legislative Council and was last updated November 18, 2006.