TLC: Special District Local Laws Code Proposed Chapters

81C165(2) SMH

CHAPTER 8249. LAZY NINE MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8249.001. DEFINITIONS ............................... 2

Sec. 8249.002. NATURE OF DISTRICT ........................ 2

Sec. 8249.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE .... 3

Sec. 8249.004. DISTRICT TERRITORY ........................ 3

[Sections 8249.005-8249.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8249.051. COMPOSITION OF BOARD; TERMS ............... 4

[Sections 8249.052-8249.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8249.101. MUNICIPAL UTILITY DISTRICT POWERS AND

DUTIES .................................. 6

[Sections 8249.102-8249.150 reserved for expansion]

SUBCHAPTER D. DIVISION OF DISTRICT INTO NEW DISTRICTS

Sec. 8249.151. DIVISION OF DISTRICT; REQUIREMENTS ........ 7

Sec. 8249.152. ELECTION FOR DIVISION OF DISTRICT;

GOVERNANCE AFTER DIVISION ............... 8

Sec. 8249.153. NOTICE OF PLAN FOR DIVISION ............... 10

Sec. 8249.154. DISTRICT NAMES FOLLOWING DIVISION ......... 10

Sec. 8249.155. ELECTION OF DIRECTORS OF NEW DISTRICTS .... 10

Sec. 8249.156. POWERS AND OBLIGATIONS OF NEW DISTRICTS ... 12

Sec. 8249.157. CONTRACT AUTHORITY OF NEW DISTRICTS ....... 13

CHAPTER 8249. LAZY NINE MUNICIPAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 8249.001. DEFINITIONS. In this chapter:

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

(2) "District" means the Lazy Nine Municipal Utility District. (Acts 78th Leg., R.S., Ch. 1158, Sec. 1.)

Source Law

Sec. 1. In this Act:

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

(2) "District" means the Lazy Nine Municipal Utility District.

Revised Law

Sec. 8249.002. NATURE OF DISTRICT. (a) The district is a municipal utility district in Travis County created under Section 59, Article XVI, Texas Constitution.

(b) The district is a political subdivision of this state. (Acts 78th Leg., R.S., Ch. 1158, Secs. 2(a) (part), (b), 3(b) (part).)

Source Law

Sec. 2. (a) A municipal utility district, to be known as the Lazy Nine Municipal Utility District, is created in Travis County, … .

(b) The district is a governmental agency and a political subdivision of this state.

[Sec. 3]

(b) The district is created under and … Section 59, Article XVI, Texas Constitution.

Revisor's Note

Section 2(b), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides that the district is "a governmental agency." The revised law omits the quoted language because it duplicates part of Section 59(b), Article XVI, Texas Constitution, which provides that a district created under Section 59(b) is a governmental agency.

Revised Law

Sec. 8249.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property in the district will benefit from the works and projects to be accomplished by the district under powers conferred by Section 59, Article XVI, Texas Constitution.

(c) The district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. (Acts 78th Leg., R.S., Ch. 1158, Secs. 3(a), (b) (part), (c).)

Source Law

Sec. 3. (a) The district is created to serve a public use and benefit.

(b) The district … is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.

(c) All of the land and other property included within the boundaries of the district will be benefited by the works and projects that are to be accomplished by the district under powers conferred by Section 59, Article XVI, Texas Constitution.

Revised Law

Sec. 8249.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 4, Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, as that territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code;

(2) Subchapter H, Chapter 54, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect:

(1) the district's organization, existence, or validity;

(2) the district's right to impose a tax; or

(3) the legality or operation of the district or the board. (Acts 78th Leg., R.S., Ch. 1158, Sec. 5; New.)

Source Law

Sec. 5. The legislature finds that the boundaries and field notes of the district form a closure. If a mistake is made in the field notes or in copying the field notes in the legislative process, the mistake does not affect in any way:

(1) the organization, existence, or validity of the district;

(2) the right of the district to impose taxes; or

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

Revisor's Note

The revision of the law governing the district does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description and because that description may not be accurate on the effective date of the revision or at the time of a later reading. For the reader's convenience, the revised law includes references to the statutory description of the district's territory and to the authority to change the district's territory under Subchapter J, Chapter 49, Water Code, applicable to the district under Sections 49.001 and 49.002 of that chapter, and under Subchapter H, Chapter 54, Water Code, applicable to the district under Section 54.001 of that chapter. The revised law also includes a reference to the general authority of the legislature to enact a law to change the district's territory.

[Sections 8249.005-8249.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Revised Law

Sec. 8249.051. COMPOSITION OF BOARD; TERMS. The district is governed by a board of five directors who serve staggered terms. (Acts 78th Leg., R.S., Ch. 1158, Secs. 7(a), (d).)

Source Law

Sec. 7. (a) The district is governed by a board of five directors.

(d) Permanent directors serve staggered four-year terms.

Revisor's Note

(1) Section 7(d), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, refers to "[p]ermanent" directors. Sections 7, 8, 9, and 10 of Chapter 1158 refer to "temporary," "initial," and "permanent" directors to distinguish between the directors named as "temporary" directors in the legislation, the directors who immediately succeeded the "temporary" directors after the first election of directors, and subsequently serving directors. Because the revised law omits provisions regarding "temporary" and "initial" directors of the district as executed (see Revisor's Note (1) to the end of this chapter), the revised law also omits "permanent" because it does not contribute to the clear meaning of the law.

(2) Section 7(d), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides that permanent directors serve staggered four-year terms. The revised law omits the reference to four-year terms because it duplicates Section 49.103(a), Water Code, which provides that the members of the board of a district shall serve four-year terms. As indicated 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, Water Code, applies to the district under Sections 49.001 and 49.002 of that chapter.

(3) Section 7(e), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides that each director of the district must qualify as provided by Section 49.055, Water Code. The revised law omits Section 7(e) because it duplicates Section 49.055, Water Code, which provides for the qualification of directors of certain districts, including municipal utility districts. The omitted law reads:

(e) Each director must qualify to serve as director in the manner provided by Section 49.055, Water Code.

Revisor's Note

(End of Subchapter)

Section 10(b), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, requires directors' elections to be held on the first Saturday in May of each even-numbered year following the first directors' election under Section 10(a) of Chapter 1158. The revised law omits the provision because it duplicates, in substance, Section 49.103(b), Water Code. Although Section 49.103 refers to "the uniform election date" in May and Section 10(b) refers to "the first Saturday in May," it is clear that the legislature meant the former because "the first Saturday in May" was the uniform election date in 2003. The omitted law reads:

(b) On the first Saturday in May of each subsequent even-numbered year following the election, the appropriate number of directors shall be elected.

[Sections 8249.052-8249.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 8249.101. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. The district has the rights, powers, privileges, functions, and duties provided by the general law of this state, including Chapters 30, 49, 50, and 54, Water Code, applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution. (Acts 78th Leg., R.S., Ch. 1158, Sec. 11.)

Source Law

Sec. 11. The district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapters 30, 49, 50, and 54, Water Code, applicable to municipal utility districts created under Section 59, Article XVI, Texas Constitution.

Revisor's Note

Section 11, Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, refers to the "rights, powers, privileges, [and] authority" of the district. The revised law omits "authority" because, in context, "authority" is included in the meaning of "powers."

Revisor's Note

(End of Subchapter)

Section 12, Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides that the board of directors of the district may annex land as provided by Chapter 49 or 54, Water Code. The revised law omits the provision because it duplicates Subchapter J, Chapter 49, Water Code, which provides for the annexation of land, and Subchapter H, Chapter 54, Water Code, which provides for adding territory. Each of those subchapters applies to the district by its own terms. (See the revisor's note to Section 8249.004.) The omitted law reads:

Sec. 12. The board may annex land as provided by Chapter 49 or Chapter 54, Water Code.

[Sections 8249.102-8249.150 reserved for expansion]

SUBCHAPTER D. DIVISION OF DISTRICT INTO NEW DISTRICTS

Revised Law

Sec. 8249.151. DIVISION OF DISTRICT; REQUIREMENTS. (a) Notwithstanding any other law, before issuing indebtedness secured by taxes or net revenue, the board may divide the territory of the district into two or more new districts.

(b) A new district created by division of the district must be at least 100 acres.

(1) a plan for payment and performance of any outstanding obligations of the district; and

(2) a metes and bounds description of each new district.

(d) The board may divide the territory of the district under this section either before or after annexing land to the district. (Acts 78th Leg., R.S., Ch. 1158, Secs. 13, 14(a) (part).)

Source Law

Sec. 13. (a) Notwithstanding any other law, either before or after annexing land into the district under Section 12 of this Act, and before issuing indebtedness secured by taxes or net revenues, the board may divide the territory of the district, including any annexed territory, into two or more new districts.

(b) A new district created by division of the district must be at least 100 acres in size.

Sec. 14. (a) On a board resolution consenting to the terms and conditions of a division under Section 13 of this Act, including a plan for payment and performance of any outstanding obligations of the district, and a metes and bounds description of the proposed new districts, … .

Revisor's Note

(1) Section 13(a), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides for the division of the district either before or after annexing land "under Section 12 of this Act." The revised law omits the reference to Section 12 of Chapter 1158 because that section is omitted from the revised law as duplicating general law. (See the revisor's note at the end of Subchapter C.)

(2) Section 14(a), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, refers to certain "terms and conditions." The revised law omits the reference to "conditions" because "conditions" is included in the meaning of "terms."

Revised Law

Sec. 8249.152. ELECTION FOR DIVISION OF DISTRICT; GOVERNANCE AFTER DIVISION. (a) On a board resolution under Section 8249.151, the board shall order an election to be held in the district to determine whether the district should be divided as proposed.

(b) Not later than the 20th day before the date of the election, the board shall give notice of the election in the manner provided by Section 49.102, Water Code.

(c) On a vote of a majority of the voters in the district in favor of dividing the district in an election held under this section, the district is divided into new districts as proposed.

(d) The new districts are separate districts and are governed as separate districts.

(e) Until the 91st day after the date of the election approving the division of the district, the board shall continue to act on behalf of the district to wind up the affairs of the district. (Acts 78th Leg., R.S., Ch. 1158, Secs. 14(a) (part), (b), 15(a), (c), (d).)

Source Law

Sec. 14. (a) On a board resolution . . . under Section 13 of this Act, … the board shall order an election to be held in the district to determine if the district should be divided as proposed.

(b) The board shall give notice of the election not later than the 20th day before the election in the manner provided by Section 49.102, Water Code.

Sec. 15. (a) On a vote of a majority of the qualified electors in the district in favor of dividing the district in an election held under Section 14 of this Act, the district shall be divided.

(d) Until the 91st day after the date of the election approving the division of the district, the board shall continue to act on behalf of the district to wind up the affairs of the district.

Revisor's Note

Section 15(a), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, refers to a vote of a majority of the "qualified electors" in the district. The revised law omits "qualified" as unnecessary in this context because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only "qualified" voters to vote in an election. The revised law substitutes "voters" for "electors" because "voters" is the term used in the Election Code.

Revised Law

Sec. 8249.153. NOTICE OF PLAN FOR DIVISION. Not later than the 30th day after the date of an election held under Section 8249.152, the district shall provide written notice of the plan for division to:

(1) the Texas Commission on Environmental Quality;

(2) the attorney general;

(3) the commissioners court of each county in which each new district is located; and

(4) any municipality having extraterritorial jurisdiction over the land in each new district. (Acts 78th Leg., R.S., Ch. 1158, Sec. 14(c).)

Source Law

(c) Not later than the 30th day after the date of the election the district shall provide written notice of the plan for division to:

(1) the Texas Commission on Environmental Quality;

(2) the attorney general;

(3) the commissioners court of each county in which each new district is located; and

(4) any municipality having extraterritorial jurisdiction over the land within each new district.

Revised Law

Sec. 8249.154. DISTRICT NAMES FOLLOWING DIVISION. After a division under Section 8249.152, the new districts shall be named by the assignment of consecutive letters, corresponding to the number of the new district. (Acts 78th Leg., R.S., Ch. 1158, Sec. 15(b).)

Source Law

(b) The resulting new districts shall be assigned consecutive letters, corresponding to the number of the new district.

Revised Law

Sec. 8249.155. ELECTION OF DIRECTORS OF NEW DISTRICTS. (a) After an election approving the division of the district, the board shall:

(1) continue to act as the board of directors of one of the new districts; and

(2) appoint temporary directors for each of the other new districts not later than the 90th day after the date of the election.

(b) A temporary director appointed under Subsection (a)(2):

(1) is not required to own land in or reside in the district for which the director is appointed;

(2) must qualify under Section 49.055, Water Code, not later than the 90th day after the date of the election approving the division of the district;

(3) takes office on the 91st day after the date of the election; and

(4) serves until the election of permanent directors under Subsection (c).

(c) On the next uniform election date under Section 41.001(a), Election Code, an election shall be held to elect five permanent directors in each district for which temporary directors were appointed under Subsection (a)(2). Of the five directors elected in each district, the three directors receiving the greatest number of votes serve until May of the first even-numbered year that is four years after the date of the election, and the remaining two directors serve until May of the first even-numbered year that is two years after the date of the election.

(d) The board of directors of each new district shall approve the bond of each director of the new district. (Acts 78th Leg., R.S., Ch. 1158, Secs. 7(c) (part), 16.)

Source Law

[Sec. 7]

(c) Temporary directors … of a new district created by division of the district under Section 13 of this Act, are not required to own land in or be residents of the district.

Sec. 16. (a) After an election approving the division of the district, the directors of the board shall:

(1) continue to act as directors of one of the new districts; and

(2) appoint temporary directors for each of the other new districts not later than the 90th day after the date of the election approving the division of the district.

(b) Temporary directors appointed under Subsection (a) of this section shall serve until an election for permanent directors is held on the next uniform election date under Section 41.001(a), Election Code. The temporary directors of each new district must qualify under Section 49.055, Water Code, not later than the 90th day after the date of the election approving the district. The temporary directors shall take office at the expiration of this 90-day period.

(c) On election of directors under Subsection (b) of this section, the three directors receiving the greatest number of votes shall serve until May of the first even-numbered year that is four years after the date of the election and two directors shall serve until May of the first even-numbered year that is two years after the date of the election.

(d) The board of each new district shall approve the bond of each of its directors.

Revised Law

Sec. 8249.156. POWERS AND OBLIGATIONS OF NEW DISTRICTS. (a) Each new district may incur and pay debts and in every respect has the full power of the original district governed by this chapter.

(b) If the district is divided in an election under Section 8249.152, the current obligations and any bond authorizations of the district are not impaired. The debts shall be paid by revenue or by taxes or assessments imposed on the land in the district as if the district had not been divided or by contributions from each new district on terms stated and agreed to in the division plan proposed by the board and approved in the election.

(c) Any other obligation of the district shall be divided pro rata among the new districts on an acreage basis or on other terms that are satisfactory to the new districts. (Acts 78th Leg., R.S., Ch. 1158, Sec. 17.)

Source Law

Sec. 17. (a) Each new district shall have the power to incur and pay debts and shall in every respect have the full power and authority of the district created and governed by this Act.

(b) If the district is divided in an election under Section 14 of this Act, the current obligations and any bond authorizations of the district are not impaired. The debts shall be paid by taxes, revenues, or assessments levied on the land in the district as if the district had not been divided or by contributions from each new district on terms stated and agreed to in the division plan proposed by the board and approved by an election under Section 14 of this Act.

(c) Any other obligation of the district shall be divided pro rata among the new districts on an acreage basis or on other terms that are satisfactory to the new districts.

Revisor's Note

(1) Section 17(a), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, refers to the "power and authority" of the district. The revised law omits "authority" for the reason stated in the revisor's note to Section 8249.101.

(2) Section 17(b), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides for the payment of debt by revenue or by taxes or assessments "levied" on land in the district. The revised law substitutes "imposed" for "levied" because "impose" is the term generally used in other statutes authorizing taxes or assessments, including Title 1, Tax Code, applicable to ad valorem taxes.

Revised Law

Sec. 8249.157. CONTRACT AUTHORITY OF NEW DISTRICTS. The new districts may contract with each other for water, wastewater, or any other matter the board of directors of each new district considers appropriate. (Acts 78th Leg., R.S., Ch. 1158, Sec. 18.)

Source Law

Sec. 18. The new districts may contract with each other for water, wastewater, and any other matters the board of each new district considers appropriate.

Revisor's Note

(End of Subchapter)

(1) Section 19(a), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides that a new district created as a result of an election approving the division of the district may issue bonds payable wholly or partially from ad valorem taxes on approval at an election called and held for that purpose. Section 19(b) of Chapter 1158 provides that notice of the bond election shall be given as provided by Section 49.106, Water Code. The revised law omits Section 19(a) because under Section 17 of Chapter 1158 (revised as Section 8249.156 of this chapter), a new district has the powers of the original district, including the power to issue bonds as provided by Chapters 49 and 54, Water Code. The revised law omits Section 19(b) because the power to issue bonds as provided by Chapters 49 and 54, Water Code, must be exercised in accordance with the requirements of those chapters. The omitted law reads:

Sec. 19. (a) A new district that is created as a result of an election approving the division of the district as provided by Section 14 of this Act may issue bonds payable wholly or partially from ad valorem taxes on the approval of a majority of the residents voting in an election called and held for that purpose.

(b) Notice of the bond election shall be given as provided by Section 49.106, Water Code.

(2) Section 20, Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides that a new district created as a result of an election approving the division of the district may levy a maintenance tax on approval at an election called and held for that purpose. The revised law omits that provision because, as explained by Revisor's Note (1) to the end of this subchapter, a new district has the powers of the original district, including the power to impose a maintenance tax as provided by Section 49.107, Water Code. The omitted law reads:

Sec. 20. A new district that is created as a result of an election approving the division of the district as provided by Section 14 of this Act may levy a maintenance tax on the approval of a majority of the residents voting in an election called and held for that purpose.

Revisor's Note

(End of Chapter)

(1) Sections 2(a), 7(b) and (c), 8, 9, and 10(a), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, contain provisions regarding the appointment of temporary directors to serve until initial directors are elected, procedures for an election to confirm the district, elect initial directors, and authorize certain taxes and bonds, and procedures for the first directors' election following the confirmation and initial directors' election. The revised law omits those provisions as executed. The omitted law reads:

Sec. 2. (a) [A municipal utility district, to be known as the Lazy Nine Municipal Utility District, is created in Travis County,] subject to approval at a confirmation election under Section 9 of this Act.

[Sec. 7]

(b) Temporary directors serve until directors are elected under Section 9 of this Act.

(c) [Temporary directors] of the district, or [of a new district created by division of the district under Section 13 of this Act, are not required to own land in or be residents of the district.]

Sec. 8. (a) The temporary board consists of:

(1) C.A. Elder;

(2) Gary Valdez;

(3) Vincent Huebinger;

(4) Bill Simpson; and

(5) Cord Shifflett.

(b) If a temporary director fails to qualify for office, the temporary directors who have qualified shall appoint a person to fill the vacancy. If at any time there are fewer than three qualified temporary directors, the Texas Commission on Environmental Quality shall appoint the necessary number of persons to fill all vacancies on the board.

Sec. 9. (a) The temporary board shall call and hold an election to confirm establishment of the district and to elect initial directors under Section 49.102, Water Code.

(b) At the confirmation and initial directors' election the board may submit to the voters a proposition to authorize:

(1) an issuance of bonds;

(2) a maintenance tax; or

(3) a tax to fund payments required under a contract.

(c) Section 41.001(a), Election Code, does not apply to a confirmation and initial directors' election held as provided by this section.

Sec. 10. (a) On the first Saturday in May of the first even-numbered year after the year in which the district is authorized to be created at a confirmation election, an election shall be held in the district for the election of two directors to replace the two initial directors serving shorter terms from the confirmation election.

(2) Section 6, Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, states that the act prevails over general law in case of a conflict or inconsistency. The revised law omits the provision because it duplicates Section 311.026, Government Code (Code Construction Act). The omitted law reads:

Sec. 6. This Act prevails over any provision of general law that is in conflict or inconsistent with this Act.

(3) Section 21, Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, recites legislative findings regarding procedural requirements for the creation of the district under the constitution and other laws and rules, including proper legal notice and filing of recommendations. The revised law omits those provisions as executed. The omitted law reads:

Sec. 21. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality.

(b) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time.

(c) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

(4) Section 22(b), Chapter 1158, Acts of the 78th Legislature, Regular Session, 2003, provides that if the district is not confirmed at a confirmation election before September 1, 2005, the act expires on that date. The revised law omits that provision because the creation of the district was confirmed at an election held before that date, and therefore the provision has no application. The omitted law reads:

(b) If the creation of the district is not confirmed at a confirmation election held under Section 9 of this Act before September 1, 2005, this Act expires on that date.


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