TLC: Special District Local Laws Code Proposed Chapters

81C29(2) ESH

CHAPTER 8282. FALCON'S LAIR UTILITY AND RECLAMATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8282.001. DEFINITIONS ............................... 2

Sec. 8282.002. NATURE OF DISTRICT ........................ 3

Sec. 8282.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE .... 4

[Sections 8282.004-8282.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Sec. 8282.051. DISTRICT TERRITORY ........................ 6

Sec. 8282.052. CITY APPROVAL REQUIRED FOR ANNEXATION ..... 8

[Sections 8282.053-8282.100 reserved for expansion]

SUBCHAPTER C. DISTRICT ADMINISTRATION

Sec. 8282.101. COMPOSITION OF BOARD; TERMS ............... 9

Sec. 8282.102. VACANCY ................................... 9

Sec. 8282.103. OFFICERS AND ASSISTANTS ................... 10

Sec. 8282.104. COMPENSATION .............................. 11

Sec. 8282.105. BOARD PROCEDURES .......................... 12

[Sections 8282.106-8282.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Sec. 8282.151. MUNICIPAL UTILITY DISTRICT POWERS ......... 15

Sec. 8282.152. AUTHORITY TO CONSTRUCT OR ACQUIRE WORKS

AND FACILITIES .......................... 17

Sec. 8282.153. ROADS ..................................... 18

Sec. 8282.154. IMPROVEMENT PROJECTS AND SERVICES ......... 19

Sec. 8282.155. FIRE DEPARTMENT ........................... 20

Sec. 8282.156. DISTRICT CONTRACTS ........................ 21

Sec. 8282.157. GENERAL CONTRACTING AUTHORITY ............. 22

Sec. 8282.158. WATER AND SEWER CONTRACTS ................. 23

Sec. 8282.159. EMINENT DOMAIN ............................ 24

Sec. 8282.160. PROVISION OF WATER AND SEWER SERVICES

BY CITY ................................. 25

Sec. 8282.161. REGULATORY AUTHORITY ...................... 26

Sec. 8282.162. POLICE PROTECTION ......................... 27

Sec. 8282.163. DISTRICT ELECTIONS ........................ 28

Sec. 8282.164. APPLICABILITY OF CITY ORDINANCES,

CODES, RESOLUTIONS, AND RULES ........... 29

[Sections 8282.165-8282.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 8282.201. GENERAL FINANCIAL POWERS .................. 30

Sec. 8282.202. TAX METHOD ................................ 31

Sec. 8282.203. TAX COLLECTOR ............................. 32

Sec. 8282.204. USE OF MAINTENANCE TAX .................... 32

Sec. 8282.205. DEPOSIT AND SECURITY OF DISTRICT MONEY .... 33

Sec. 8282.206. INVESTMENT OF DISTRICT MONEY .............. 34

[Sections 8282.207-8282.250 reserved for expansion]

SUBCHAPTER F. BONDS

Sec. 8282.251. AUTHORITY TO ISSUE BONDS .................. 35

Sec. 8282.252. AUTHORITY TO ISSUE BONDS FOR ROADS AND

TURNPIKES ............................... 35

Sec. 8282.253. AUTHORITY TO ISSUE BONDS FOR

IMPROVEMENT PROJECTS OR SERVICES ........ 36

Sec. 8282.254. OBLIGATIONS ............................... 37

CHAPTER 8282. FALCON'S LAIR UTILITY AND RECLAMATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 8282.001. DEFINITIONS. In this chapter:

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

(2) "City" means the city of Mesquite.

(3) "District" means the Falcon's Lair Utility and Reclamation District. (Acts 69th Leg., R.S., Ch. 935, Secs. 1(a) (part), 2.)

Source Law

Sec. 1. (a) … [a district] … [is created and] shall be known as Falcon's Lair Utility and Reclamation District, … .

Sec. 2. In this Act:

(1) "District" means the Falcon's Lair Utility and Reclamation District.

(2) "City" means the city of Mesquite, Texas.

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

Revised Law

Sec. 8282.002. NATURE OF DISTRICT. The district is a conservation and reclamation district created under Section 52, Article III, and Section 59, Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch. 935, Sec. 1(a) (part).)

Source Law

(a) … under Article XVI, Section 59, and Article III, Section 52, of the Texas Constitution, a district located within the present corporate limits of the city of Mesquite, Texas, is created and [shall be known as Falcon's Lair Utility and Reclamation District,] of Dallas County, Texas.

Revisor's Note

(1) Section 1(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district is created under Section 59, Article XVI, Texas Constitution. For the convenience of the reader, the revised law notes that the district is a "conservation and reclamation district" because that is the terminology provided by that constitutional provision.

(2) Section 1(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district is "located within the present corporate limits of the city of Mesquite, Texas . . . of Dallas County, Texas." The revised law omits the quoted language because it was included in the law being revised only as a convenience to the reader and duplicates language in Section 5(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, which is not necessary to revise in this chapter. See Revisor's Note (1) to Section 8282.051.

(3) Section 1(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to a confirmation election. Because the confirmation election occurred in 1985, the revised law omits the provision as executed. The omitted law reads:

Sec. 1. (a) Subject to the confirmation election required by this Act, and … .

(4) Section 1(b), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the district as "a governmental agency and a body corporate and politic." The revised law omits the references because they duplicate a portion of Section 59(b), Article XVI, Texas Constitution, which provides that a conservation and reclamation district is a governmental agency and a body politic and corporate. The omitted law reads:

(b) The district is a governmental agency and a body corporate and politic.

Revised Law

Sec. 8282.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of the district will benefit from the works and projects accomplished by the district under the powers conferred by this chapter.

(c) The creation of the district is essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution. (Acts 69th Leg., R.S., Ch. 935, Secs. 3, 6.)

Source Law

Sec. 3. The legislature finds that the creation and establishment of the district are essential to the accomplishment of the purposes of Article XVI, Section 59, and Article III, Section 52, of the Texas Constitution.

Sec. 6. The legislature finds that all of the land and other property included in the boundaries of the district will be benefited by the works and projects that are to be accomplished by the district pursuant to the powers conferred on the district by this Act, and that the district is created to serve a public use and benefit.

Revisor's Note

Section 3, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, states that the "creation and establishment" of the district are essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution. The revised law omits "establishment" because its meaning is included in the meaning of "creation."

Revisor's Note

(End of Subchapter)

(1) Section 4, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that a confirmation and directors' election must be held before the district issues bonds or other obligations. The revised law omits that provision as executed. The omitted law reads:

Sec. 4. Before bonds or other obligations of the district are issued, the creation of the district must be approved and the directors of the district must be elected at a confirmation and directors' election called and held as provided by Sections 54.026-54.029, Water Code.

(2) Section 25, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district may be abolished as provided by Chapter 128, Acts of the 50th Legislature, Regular Session, 1947 (Article 1182c-1, Vernon's Texas Civil Statutes). The revised law omits that provision because the cited law applies by its own terms. Article 1182c-1 was codified by Chapter 149, Acts of the 70th Legislature, Regular Session, 1987, as Sections 43.074, 43.075, and 43.081, Local Government Code. The omitted law reads:

Sec. 25. The city may abolish and dissolve the district and assume the assets, properties, bonds, and other obligations of the district as provided by Chapter 128, Acts of the 50th Legislature, Regular Session, 1947 (Article 1182c-1, Vernon's Texas Civil Statutes).

[Sections 8282.004-8282.050 reserved for expansion]

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS

TO DISTRICT TERRITORY

Revised Law

Sec. 8282.051. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 5(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, as that territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

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

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

(2) the district's right or power to issue bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds;

(3) the district's authority to impose a tax;

(4) the validity of any contract, agreement, or obligation of the district; or

(5) the legality of the operations or proceedings of the district or the board. (Acts 69th Leg., R.S., Ch. 935, Sec. 5(b); New.)

Source Law

(b) The legislature finds that the boundaries and field notes of the district form a closure. If any mistake is made in copying the field notes in the legislative process, or otherwise a mistake is made in those field notes, it in no way affects the organization, existence, and validity of the district, or the right and power of the district to issue bonds for the purposes for which the district is created or to pay the principal of and interest on those bonds, or the authority of the district to levy and collect taxes, or the validity of any contracts, agreements, or obligations of the district, or in any other manner affects the legality of the operations or proceedings of the district or its board.

Revisor's Note

(1) 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 the 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 a reference to the statutory description of the district's territory and references to the authority to change the district's territory under Subchapter H, Chapter 54, Water Code, applicable to municipal utility districts, and under Subchapter J, Chapter 49, Water Code, applicable to the district under Sections 49.001 and 49.002 of that chapter. The revised law also includes a reference to the general authority of the legislature to enact other law to change the district's territory.

(2) Section 5(b), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the district's authority to "levy and collect" a tax. Other provisions of that act, such as Section 8(b) (revised as Section 8282.153) refer to the district's authority to "assess" a tax. Throughout this chapter, the revised law substitutes "impose" for "assess," "levy," and "collect" in the context of taxation because "impose" is the term generally used in Title 1, Tax Code, and includes the assessment, levying, and collection of a tax.

Revised Law

Sec. 8282.052. CITY APPROVAL REQUIRED FOR ANNEXATION. The district must secure the approval of the city, in the form of an ordinance or resolution of the city council of the city, before final annexation of additional land to the district. (Acts 69th Leg., R.S., Ch. 935, Sec. 17 (part).)

Source Law

Sec. 17. … The district must secure the approval of the city, in the form of an ordinance or resolution of the city council of the city, before final annexation of any additional land to the district.

Revisor's Note

Section 17, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district may add or exclude land in the manner provided by Chapter 54, Water Code. The revised law omits that provision as unnecessary. Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed some of the relevant provisions of Subchapter H, Chapter 54, Water Code, and enacted Subchapter J, Chapter 49, Water Code, to govern the addition of land to a municipal utility district and certain other districts. The remaining relevant provisions of Subchapter H, Chapter 54, Water Code, apply to the district under Section 54.001, Water Code, without an express reference to those sections by this chapter. An express reference to Subchapter J, Chapter 49, Water Code, is also unnecessary because that subchapter and the other provisions of Chapter 49 apply to the district under Sections 49.001 and 49.002 of that chapter. Throughout this chapter, the revised law omits law that is superseded by Chapter 49, Water Code, or that duplicates law contained in that chapter. The omitted law reads:

Sec. 17. The board may exclude land from the district and may add land to the district in the manner provided for municipal utility districts operating under Chapter 54, Water Code… .

[Sections 8282.053-8282.100 reserved for expansion]

SUBCHAPTER C. DISTRICT ADMINISTRATION

Revised Law

Sec. 8282.101. COMPOSITION OF BOARD; TERMS. (a) The board consists of five directors.

(b) Directors serve staggered four-year terms, with the terms of two or three directors expiring every other year. (Acts 69th Leg., R.S., Ch. 935, Secs. 9(a), (g) (part).)

Source Law

Sec. 9. (a) The district shall be governed by a board of five directors.

(g) … directors shall serve for staggered four-year terms, with the terms of two or three directors expiring every other year.

Revisor's Note

Section 9(g), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the initial directors and the directors elected at the confirmation and directors' election. The revised law omits the language as executed. The omitted law reads:

(g) Except for the initial directors and the directors elected at the confirmation and directors' election, … .

Revised Law

Sec. 8282.102. VACANCY. (a) Except as provided by Subsection (b), if a vacancy occurs in the office of director, the remaining directors shall appoint a person to fill the vacancy until the next election of directors for the district. If the vacant position is not regularly scheduled to be filled at that election, the person elected at that election to fill the vacancy serves only for the unexpired term.

(b) If the number of qualified directors by reason of vacancies is fewer than three, the city council of the city, on petition of the owners of a majority in value of the land in the district, as shown by the tax rolls of the city, shall appoint the necessary number of directors to fill all vacancies on the board.

(c) The city may not be found liable for an act relating to a district obligation or the operation of the district because of the city's appointment of a director as prescribed by Subsection (b). (Acts 69th Leg., R.S., Ch. 935, Secs. 9(d), (h).)

Source Law

(d) If a vacancy occurs in the office of director, the remaining directors shall appoint a person to fill the vacancy until the next election of directors for the district. If the vacant position is not regularly scheduled to be filled at that election, the person elected at that election to fill the vacancy shall serve only for the unexpired term. However, if the number of qualified directors by reason of vacancies is less than three, the city council of the city, on petition of the owners of a majority in value of the land in the district, as shown by the tax rolls of the city, shall appoint the necessary number of directors to fill all vacancies on the board.

(h) The city may not be found liable for an act relating to a district obligation or the operation of the district because of an appointment of a director made by the city as prescribed by Subsection (d) of this section.

Revised Law

Sec. 8282.103. OFFICERS AND ASSISTANTS. (a) The board shall reorganize and elect officers after each election and at any other time the board considers appropriate.

(b) The board may designate one or more assistant secretaries and an assistant treasurer. An assistant secretary or assistant treasurer is not required to be a director.

(1) shall keep the minutes of the meetings of the board and all official records of the board; and

(2) may certify as to the accuracy or authenticity of any actions, proceedings, minutes, or records of the board or of the district. (Acts 69th Leg., R.S., Ch. 935, Secs. 10(a) (part), (b).)

Source Law

(a) … After each election and at any other time the board considers appropriate, the board shall reorganize and elect new officers.

(b) The board may designate one or more assistant secretaries and an assistant treasurer, who are not required to be members of the board. The secretary of the board or one of the assistant secretaries shall be responsible for keeping the minutes of the meetings of the board and all official records of the board and may certify as to the accuracy or authenticity of any actions, proceedings, minutes, or records of the board or of the district.

Revised Law

Sec. 8282.104. COMPENSATION. Unless the board by resolution increases the fee to an amount authorized by Section 49.060, Water Code, each director is entitled to receive compensation in an amount not to exceed $50 for each meeting of the board, as determined by the board. (Acts 69th Leg., R.S., Ch. 935, Sec. 11 (part).)

Source Law

Sec. 11. Each member of the board is entitled to receive compensation in an amount up to $50 for each meeting of the board as determined by the board and … .

Revisor's Note

(1) Section 11, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides for a $50 director's fee for attendance at a board meeting. Section 49.060, Water Code, enacted in 1995 and applicable by its own terms to the district, authorizes higher fees. Section 49.060(e), however, provides that if the amount of the fee set by Section 49.060 would result in a fee increase, the increase does not apply to a district unless the district's board by resolution adopts a higher fee. The revised law is drafted accordingly.

(2) Section 11, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides for reimbursement of a director's expenses incurred on the district's behalf or in discharging a duty. The revised law omits the provision because it is expressly superseded by Section 49.060, Water Code (enacted in 1995). The omitted law reads:

Sec. 11. … directors may be reimbursed for actual expenses incurred on behalf of the district or in the discharge of their duties.

Revised Law

Sec. 8282.105. BOARD PROCEDURES. The board shall provide the method of execution of all contracts, the signing of checks, and the handling of any other matter approved by the board, as shown in the district's official minutes. (Acts 69th Leg., R.S., Ch. 935, Sec. 10(a) (part).)

Source Law

Sec. 10. (a) The board shall provide the method of execution of all contracts, the signing of checks, and the handling of any other matters approved by the board, as shown in the official minutes of the district… .

Revisor's Note

(End of Subchapter)

(1) Sections 9(b), (c), and (e), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refer to the initial board of directors. Section 9(e), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, also establishes the manner in which the terms of the first elected board of directors expire. The revised law omits those provisions as executed. The omitted law reads:

(b) On the effective date of this Act, the following persons are the initial directors of the district:

(1) John Whiteside;

(2) Jay Kanter;

(3) Russell Orms;

(4) Tom Goodiel; and

(5) Jerry Ragsdale.

(c) The initial directors shall qualify to serve as directors before the first meeting of the board by taking the oath of office, executing a bond, and furnishing evidence of their qualifications as required by Chapter 54, Water Code.

(e) The initial directors shall serve until the district is created and the first elected directors of the district are elected at the confirmation and directors' election and the directors have qualified for office. The positions of the two directors who receive the fewest number of votes shall be filled at the first regular directors' election, and the directors first elected to those positions serve only until the directors elected at that first regular directors' election are elected and have qualified for office. The positions of the three remaining directors shall be filled at the second regular directors' election, and the directors first elected to those positions serve only until the directors elected at that second regular election are elected and have qualified for office.

(2) Section 9(f), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that directors' elections in the district shall be held on "the first Tuesday after the first Monday in November of each odd-numbered year." The revised law omits that provision as impliedly repealed by Section 49.103(b), Water Code, enacted in 1995 and amended in 2001 and 2005, which requires elections of directors to be held on the uniform election date established by the Election Code in May of each even-numbered year. The omitted law reads:

(f) After the confirmation and directors' election, a regular directors' election shall be held on the first Tuesday after the first Monday in November of each odd-numbered year to elect the appropriate number of directors.

(3) Section 12, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, requires the board of directors of the district to hold "regular, special, or emergency meetings" of the board. The revised law omits that provision because it duplicates in substance Section 49.064, Water Code, which requires the board to hold regular and special meetings as necessary to conduct business. Although Section 49.064 does not specifically refer to "emergency meetings" of a district's board of directors, an emergency meeting is a type of special meeting. Further, Section 49.064 provides that "[a]ll meetings shall be conducted in accordance with the open meetings law, Chapter 551, Government Code." Chapter 551, Government Code, provides for emergency meetings. See Section 551.045, Government Code. The omitted law reads:

Sec. 12. The board shall hold regular, special, or emergency meetings at those times and on those dates the board determines.

(4) Section 13, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, requires the board of directors of the district to designate one or more offices and meeting places. The revised law omits the provision because it duplicates Sections 49.062(a) and (b), Water Code. The omitted law reads:

Sec. 13. The board shall designate one or more offices of the district and one or more meeting places of the board either inside or outside the district.

(5) Section 6, Chapter 1213, Acts of the 75th Legislature, Regular Session, 1997, provides transition language related to the terms of office for certain members of the district's board of directors and to the election or appointment of successor directors. The revised law omits the language regarding the terms of those directors as executed. The revised law omits the language regarding the election or appointment of successors because it duplicates Section 8282.102 and also Section 9(f), Chapter 935, which was omitted from the revised law for the reason stated in Revisor's Note (2) to the end of this subchapter. The omitted law reads:

Sec. 6. The terms of the members of the board of directors of the Falcon's Lair Utility and Reclamation District serving on the effective date of this Act who were appointed by the city council of the City of Mesquite, Texas, expire on the first Tuesday after the first Monday in November, 1997. The terms of the remaining members of the board of directors of the Falcon's Lair Utility and Reclamation District serving on the effective date of this Act expire on the first Tuesday after the first Monday in November, 1999. Successor directors shall be elected or appointed in the manner provided by Section 9, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, as amended by this Act.

[Sections 8282.106-8282.150 reserved for expansion]

SUBCHAPTER D. POWERS AND DUTIES

Revised Law

Sec. 8282.151. MUNICIPAL UTILITY DISTRICT POWERS. The district has the rights, powers, privileges, and functions conferred, contemplated, and described by Section 59, Article XVI, Texas Constitution, including the rights, powers, privileges, and functions conferred by the general law applicable to municipal utility districts operating under Chapter 54, Water Code. (Acts 69th Leg., R.S., Ch. 935, Sec. 7 (part).)

Source Law

Sec. 7. … the district has the rights, powers, privileges, authority, and functions granted, conferred, contemplated, and described in Article XVI, Section 59, of the Texas Constitution, including the rights, powers, privileges, authority, and functions conferred by the general laws of this state applicable to municipal utility districts operating under Chapter 54, Water Code, … .

Revisor's Note

(1) Section 7, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the "powers" and "authority" of the district. Throughout this chapter, the revised law omits the reference to "authority" in this context because "authority" is included in the meaning of "powers."

(2) Section 7, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the rights, powers, privileges, authority, and functions "granted, conferred, contemplated, and described" by the constitution. The revised law omits the reference to "granted" because in this context, "granted" is included in the meaning of "conferred."

(3) Section 7, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district has certain rights, powers, privileges, authority, and functions granted by general law, "together with" the rights, powers, privileges, authority, and functions under the act. Section 8(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district has certain rights, powers, privileges, authority, and functions granted by that section. The revised law omits the provisions because a substantive provision of this chapter that grants a right, power, privilege, authority, or function is sufficient by itself to grant the right, power, privilege, authority, or function. The omitted law reads:

Sec. 7. … together with the additional rights, powers, privileges, authority, and functions enumerated, described, expressed, or implied by this Act. …

Sec. 8. (a) The district has the additional rights, powers, privileges, authority, and functions provided by this section.

(4) Section 7, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district has certain rights "[s]ubject to the specific provisions of this Act" and that that act prevails over general law in case of a conflict or other inconsistency. The revised law omits the provisions as unnecessary. The "specific provisions" of Chapter 935 affecting those rights apply on their own terms. The provision regarding a conflict or inconsistency with general law duplicates Section 311.026, Government Code (Code Construction Act). The omitted law reads:

Sec. 7. Subject to the specific provisions of this Act, [the district has the rights] … . If any general law is in conflict or inconsistent with this Act, this Act prevails.

Revised Law

Sec. 8282.152. AUTHORITY TO CONSTRUCT OR ACQUIRE WORKS AND FACILITIES. Subject to compliance with applicable codes, ordinances, resolutions, and rules of the city, the district may plan, lay out, purchase, construct, acquire, own, operate, maintain, repair, or improve, inside or outside the boundaries of the district, any works, improvements, facilities, plants, equipment, and appliances, including any administrative buildings, properties, and facilities, any permits, franchises, licenses, or contract or property rights, and any levees, drains, waterways, lakes, reservoirs, channels, conduits, sewers, dams, storm water detention facilities, or other similar facilities and improvements, whether for municipal, industrial, agricultural, recreational, conservation, reclamation, or flood control purposes, that are necessary, helpful, or incidental to the exercise of any right, power, privilege, or function provided by this chapter. (Acts 69th Leg., R.S., Ch. 935, Sec. 8(e).)

Source Law

(e) Subject to compliance with the general law of the state and applicable codes, ordinances, resolutions, rules, and regulations of the city, the district may plan, lay out, purchase, construct, acquire, own, operate, maintain, repair, and improve, inside or outside its boundaries, works, improvements, facilities, plants, equipment, and appliances, including any administrative buildings, properties, and facilities, any permits, franchises, licenses or contract or property rights, and any levees, drains, waterways, lakes, reservoirs, channels, conduits, sewers, dams, stormwater detention facilities, or other similar facilities and improvements, whether for municipal, industrial, agricultural, recreational, conservation, reclamation, or flood control purposes, that are necessary, helpful, or incidental to the exercise of any right, power, privilege, authority, or function provided by this Act.

Revisor's Note

(1) Section 8(e), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district may exercise certain powers subject to compliance with "the general law of the state." The revised law omits the quoted language because it is unnecessary to state that the district must comply with general law; general laws apply in the absence of such a statement.

(2) Section 8(e), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to "rules" and "regulations." Throughout this chapter, the revised law omits the reference to "regulations" in this context because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 8282.153. ROADS. (a) To the extent authorized by Section 52, Article III, Texas Constitution, the district may provide for the construction, maintenance, and operation of a macadamized, graveled, or paved road or turnpike, or a work, facility, or improvement in aid of a road or turnpike, inside or outside the district's boundaries.

(b) Subject to compliance with Sections 8282.252(a) and (b), the district may issue, sell, and deliver bonds, notes, or other district obligations for a purpose described by Subsection (a) and may impose taxes to pay the bonds.

(c) Without the city's consent and approval, the district may not undertake to construct, maintain, operate, repair, reconstruct, cross, or intersect any city street or road.

(d) Sections 49.181, 49.182, and 54.5161, Water Code, do not apply to projects undertaken by the district under this section. (Acts 69th Leg., R.S., Ch. 935, Secs. 8(b), 19(c) (part).)

Source Law

[Sec. 8]

(b) The district may provide for the construction, maintenance, and operation of macadamized, graveled, or paved roads and turnpikes, or works, facilities, or improvements in aid of those roads and turnpikes, inside or outside the boundaries of the district, to the extent authorized by Article III, Section 52, of the Texas Constitution. Subject to compliance with Subsection (b), Section 19, of this Act, the district may issue, sell, and deliver the bonds, notes, or other obligations of the district for those purposes and may assess, levy, and collect taxes to pay the bonds. Without the consent and approval of the city, the district may not undertake to construct, maintain, operate, repair, reconstruct, cross, or intersect any streets or roads of the city.

[Sec. 19]

(c) Sections 54.516, 54.5161, and 54.517, Water Code, do not apply to projects undertaken by the district pursuant to the authority of Subsection (b), Section 8, of this Act or … .

Revisor's Note

Section 19(c), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to "Sections 54.516, 54.5161, and 54.517, Water Code." Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Sections 54.516 and 54.517, Water Code, and enacted Sections 49.181 and 49.182, Water Code, respectively, to govern matters previously governed by the repealed sections. The revised law is drafted accordingly.

Revised Law

Sec. 8282.154. IMPROVEMENT PROJECTS AND SERVICES. (a) The board may undertake an improvement project or service that confers a special benefit on all or a definable part of the district.

(b) The board may levy and collect special assessments on property in the area described by Subsection (a), based on the benefit conferred by the improvement project or service, to pay all or part of the cost of the project or service.

(c) An improvement project or service provided by the district may include the acquisition, construction, or financing of water, wastewater, or drainage facilities, streets, sidewalks, or roadways.

(d) Sections 375.113-375.124, Local Government Code, apply to the financing of an improvement project or service under this section. (Acts 69th Leg., R.S., Ch. 935, Sec. 20A.)

Source Law

Sec. 20A. (a) The board may undertake an improvement project or service that confers a special benefit on all or a definable part of the district.

(b) The board may levy and collect special assessments on property in the area described by Subsection (a) of this section, based on the benefit conferred by the improvement project or service, to pay all or part of the cost of the project or service.

(c) An improvement project or service provided by the district may include the acquisition, construction, or financing of water, wastewater, or drainage facilities, streets, sidewalks, or roadways.

(d) Sections 375.113 through 375.124, Local Government Code, apply to the financing of an improvement project or service under this subsection.

Revised Law

Sec. 8282.155. FIRE DEPARTMENT. (a) The district may establish, operate, and maintain a fire department to perform all firefighting activities in the district and may issue bonds and impose taxes to pay for the department and the activities, as authorized by Section 59(f), Article XVI, Texas Constitution, and Section 49.351, Water Code. For purposes of this chapter, a reference in Section 49.351, Water Code, to the Texas Commission on Environmental Quality or the executive director of the commission means the city council of the city.

(b) The city has the superior right to provide the degree of firefighting services the city considers to be in the city's best interests. (Acts 69th Leg., R.S., Ch. 935, Sec. 8(c).)

Source Law

(c) The district may establish, operate, and maintain a fire department to perform all fire-fighting activities within the district and may issue bonds and levy taxes to pay for the department and the activities, as authorized by Article XVI, Section 59(f), of the Texas Constitution and Section 50.055, Water Code. The references in Section 50.055, Water Code, to the Texas Water Commission and the executive director of the Texas Department of Water Resources mean the city council of the city under this Act. The city has the superior right to provide the degree of fire-fighting services it considers to be in the best interests of the city.

Revisor's Note

(1) Section 8(c), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to Section 50.055, Water Code. Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Section 50.055, Water Code, and enacted Section 49.351, Water Code, to govern matters previously governed by the repealed section. The revised law is drafted accordingly.

(2) Section 8(c), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the "Texas Water Commission" and to the "executive director of the Texas Department of Water Resources." To reflect the current name of the agency with the relevant regulatory authority, the revised law substitutes "Texas Commission on Environmental Quality" for "Texas Water Commission" and for "Texas Department of Water Resources" and substitutes "executive director of the Texas Commission on Environmental Quality" for "executive director of the Texas Department of Water Resources."

Revised Law

Sec. 8282.156. DISTRICT CONTRACTS. (a) Except as provided by this section, a contract for the purchase or construction of materials, machinery, or other things used to constitute the district's works, improvements, facilities, plants, equipment, or appliances must be advertised, let, and awarded as provided by Section 49.273, Water Code.

(b) If the district determines, after a contract has been awarded, that additional work is needed or that the character or type of the work or facilities should be changed, the board may authorize change orders to the contract on terms the board approves, provided the change does not increase the total cost of the contract by more than 25 percent.

(1) the estimated amount of a proposed construction contract is more than $5,000 but less than $25,000; or

(2) the duration of a proposed construction contract is more than two years.

(d) A contract must be written and awarded to the lowest and best bidder. (Acts 69th Leg., R.S., Ch. 935, Sec. 22.)

Source Law

Sec. 22. (a) Contracts for the purchase or construction of materials, machinery, and all things to constitute the works, improvements, facilities, plants, equipment, and appliances of the district shall be advertised, let, and awarded as provided by Section 54.220, Chapter 54, Water Code.

(b) After a contract has been awarded and the district determines that additional work is needed or that the character or type of the work or facilities should be changed, the board may authorize change orders to the contract on terms the board may approve, provided the change does not increase the total cost of the contract by more than 25 percent.

(c) If the estimated amount of a proposed construction contract is more than $5,000, but less than $25,000, or the duration of the contract is more than two years, informal competitive bids or proposals shall be asked from at least three bidders.

(d) Contracts shall be written and shall be awarded to the lowest and best bidder.

Revisor's Note

Section 22(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to Section 54.220, Water Code. Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Section 54.220, Water Code, and enacted Section 49.273, Water Code, to govern matters previously governed by the repealed section. The revised law is drafted accordingly.

Revised Law

Sec. 8282.157. GENERAL CONTRACTING AUTHORITY. (a) The district may contract with the United States, this state or its agencies, the city, any other public agency or entity, or an individual, corporation, or other entity for the operation and maintenance or the construction of any facility or improvement authorized by this chapter.

(b) A contract that obligates the district to make payments in whole or in part from ad valorem taxes, other than maintenance taxes, is subject to approval at an election held under the same procedures required for the issuance of bonds payable from ad valorem taxes. (Acts 69th Leg., R.S., Ch. 935, Secs. 23(a), (c).)

Source Law

Sec. 23. (a) The district may enter into contracts with the United States and its agencies, the state and its agencies, the city, any other public agency or entity, individuals or corporations, or any other entity for the operation and maintenance or the construction of any facility or improvement authorized by this Act.

(c) Any contract obligating the district to make payments in whole or in part from ad valorem taxes, other than maintenance taxes, is subject to approval at an election held under the same procedures required for the issuance of bonds payable from ad valorem taxes.

Revisor's Note

Section 23(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to "the United States and its agencies." The revised law omits "its agencies" because under Section 311.005(9), Government Code (Code Construction Act), "United States" is defined to include an agency of the United States of America.

Revised Law

Sec. 8282.158. WATER AND SEWER CONTRACTS. (a) The district and the city may enter into, execute, and perform contracts under Section 552.014, Local Government Code, as they consider to be appropriate and mutually advantageous.

(b) A contract under this section may provide for the district's acquisition for the benefit of the city and the district's conveyance to the city of, and the city's acceptance and ownership of and payment for, all or any designated portion of any of the works, facilities, improvements, equipment, appliances, properties, and contract rights as provided by Section 552.014, Local Government Code, that:

(1) the district is authorized under this chapter to purchase, acquire, construct, own, or improve; and

(2) the city, under its home-rule charter or under general law, would have been or may be authorized to purchase, acquire, construct, own, or improve in its own name or behalf. (Acts 69th Leg., R.S., Ch. 935, Sec. 24.)

Source Law

Sec. 24. The district and the city may enter into, execute, perform, and carry out contracts they may consider appropriate and mutually advantageous under Chapter 224, Acts of the 56th Legislature, Regular Session, 1959 (Article 1109j, Vernon's Texas Civil Statutes). Those contracts may provide for the district's acquisition for the benefit of the city and the district's conveyance to the city of, and the city's acceptance and ownership of and payment for, all or any designated portions of any of the works, facilities, improvements, equipment, appliances, properties, and contract rights as provided by Chapter 224, Acts of the 56th Legislature, Regular Session, 1959 (Article 1109j, Vernon's Texas Civil Statutes), which the district is authorized by this Act to purchase, acquire, construct, own, or improve and which the city, under its home-rule charter or under the general law of this state, would have been or may be authorized to purchase, acquire, construct, own, or improve in its own name or behalf.

Revisor's Note

Section 24, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to Chapter 224, Acts of the 56th Legislature, Regular Session, 1959 (Article 1109j, Vernon's Texas Civil Statutes). Article 1109j was codified in 1987 as Section 402.014, Local Government Code. Section 402.014, Local Government Code, was renumbered as Section 552.014, Local Government Code, by Section 3.76(a)(2)(B), Chapter 885, Acts of the 80th Legislature, Regular Session, 2007. The revised law is drafted accordingly.

Revised Law

Sec. 8282.159. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain in the manner, with the privileges, rights, and immunities, and subject to the conditions and limitations provided by Sections 49.222 and 49.223, Water Code, to acquire land, an easement, a right-of-way, or other property or improvement that is or may be needed to carry out the district's powers, purposes, and functions.

(b) Without the city's advance written consent and approval, the district may not begin eminent domain proceedings for a purpose described by Subsection (a).

(c) Without approval by city ordinance or resolution, the district may not exercise the power of eminent domain to acquire any land, easement, right-of-way, or other property or improvement owned by the city or any city agency or instrumentality. (Acts 69th Leg., R.S., Ch. 935, Sec. 8(d).)

Source Law

(d) The district may exercise the power of eminent domain in the manner, with the privileges, rights, and immunities, and subject to the conditions and limitations provided by Sections 54.212 and 54.213, Water Code, to acquire land, easements, rights-of-way, or other property or improvements that are or may be needed to carry out the powers, purposes, and functions of the district. However, without the advance written consent and approval of the city, the district may not commence eminent domain proceedings for any of those purposes, and without approval by city ordinance or resolution, the district may not exercise the power of eminent domain for the purpose of acquiring any land, easements, rights-of-way, or other property or improvements owned by the city, or any agency or instrumentality of the city.

Revisor's Note

Section 8(d), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to Sections 54.212 and 54.213, Water Code. Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Sections 54.212 and 54.213, Water Code, and enacted Sections 49.222 and 49.223, Water Code, respectively, to govern matters previously governed by the repealed sections. The revised law is drafted accordingly.

Revised Law

Sec. 8282.160. PROVISION OF WATER AND SEWER SERVICES BY CITY. (a) Notwithstanding Section 8282.157(a), to the extent that the city considers practical, the city may provide water supply and sewer services to residential retail customers in the district and may provide water supply and wastewater treatment services to the district, under a mutually agreeable contract or otherwise.

(b) The district is responsible for an off-site extension that is required to provide water supply and sewer service. (Acts 69th Leg., R.S., Ch. 935, Sec. 23(b).)

Source Law

(b) Notwithstanding Subsection (a) of this section, to the extent that the city considers it practical to do so, the city may provide water supply and sewer services to residential retail customers in the district and may provide water supply and wastewater treatment services to the district, pursuant to mutually agreeable contracts or otherwise. The district is responsible for an off-site extension that is required to provide water supply and sewer service.

Revised Law

Sec. 8282.161. REGULATORY AUTHORITY. (a) With respect to district property, the district has the regulatory and police power provided by Chapters 49 and 54, Water Code, except as limited by this section.

(b) Except with respect to any rules relating to the operation, use, or occupancy of the lakes, reservoirs, levees, channels, drains, dams, and contiguous or adjacent facilities constructed or to be constructed and owned or controlled by the district, the board may not adopt a rule that includes a penal provision to be enforced by a district peace officer unless the city has approved the adoption of the rule. The proposed rule must be presented to the city for the city's review and approval at least 30 days before the rule's effective date.

(c) The district may not adopt a penal rule that conflicts or is inconsistent with any ordinance of general applicability in the city.

(d) The district may not adopt or enforce a rule relating to the city's streets or roads. (Acts 69th Leg., R.S., Ch. 935, Secs. 26(a), (b), (c), (d); New.)

Source Law

Sec. 26. (a) With respect to the property of the district, the district has the regulatory and police power provided by Chapter 54, Water Code, with the following limitations provided by Subsections (b)-(d) of this section.

(b) Except with respect to any rules and regulations relating to the operation, use, or occupancy of the lakes, reservoirs, levees, channels, drains, dams, and contiguous or adjacent facilities constructed or to be constructed and owned or controlled by the district, a rule or regulation of the district that includes a penal provision to be enforced by a peace officer of the district must be approved by the city as a condition precedent to its adoption and must be submitted to the city for its review and approval at least 30 days before its effective date.

(c) The district may not adopt penal rules or regulations that conflict or are inconsistent with any ordinance of general application in the city.

(d) The district may not adopt or enforce a rule or regulation relating to the city's streets or roads.

Revisor's Note

Section 26(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to "regulatory and police power provided by Chapter 54, Water Code." Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed some of the relevant provisions of Chapter 54, Water Code, and enacted Chapter 49, Water Code, which also governs the regulatory and police power of the district. For the reader's convenience, the revised law includes a reference to Chapter 49, Water Code.

Revised Law

Sec. 8282.162. POLICE PROTECTION. Except for providing for the security of lakes, reservoirs, levees, channels, drains, dams, and contiguous and adjacent facilities, excluding parks and streets owned or controlled by the district, the district may not provide peace officers or have responsibility for police protection in the city's corporate limits. That function is a responsibility of the city. (Acts 69th Leg., R.S., Ch. 935, Sec. 26(e).)

Source Law

(e) Except for the security of lakes, reservoirs, levees, channels, drains, dams, and contiguous and adjacent facilities, excluding parks and streets owned or controlled by the district, the district may not provide peace officers or have responsibility for police protection within the city's corporate limits, but this function is a responsibility of the city.

Revised Law

Sec. 8282.163. DISTRICT ELECTIONS. (a) The board shall order each election the district is required to hold.

(b) Notice of a district election must be published once a week for two consecutive weeks in a newspaper with general circulation in the city, with the first publication occurring at least 14 days before the date of the election.

(c) A district election held for any purpose may be held separately or at the same time as an election for another purpose including a director or maintenance tax election that may be held on the same day as a bond election or another election. An election held at the same time as an election for another purpose may be called by the board in a single election order, and the results may be canvassed in a single order. (Acts 69th Leg., R.S., Ch. 935, Secs. 16(a), (c), (d).)

Source Law

Sec. 16. (a) Elections required to be held by the district shall be called and the results canvassed by the board.

(c) Notice of district elections shall be given by publication in a newspaper with general circulation in the city once a week for two consecutive weeks, with the first publication occurring at least 14 days before the date of the election.

(d) An election held by the district for any purpose may be held separately or may be held at the same time as elections for other purposes including any confirmation, director, or maintenance tax election that may be held on the same day as a bond election or any other election. An election held at the same time as elections for other purposes may be called by the board in a single election order and the results canvassed in a single order.

Revisor's Note

(1) Section 16(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that a district election "shall be called" by the board. The revised law substitutes "shall order" for "shall be called" because "order" is the term used in Chapter 3, Election Code.

(2) Section 16(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the board shall canvass the results of a district election. The revised law omits that provision because it duplicates Section 67.002, Election Code, which requires the governing body of a political subdivision that orders an election to canvass the returns.

(3) Section 16(b), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that "[u]nless otherwise provided by this Act," district elections "shall be held in accordance with the Texas Election Code." The revised law omits the quoted language because Section 1.002, Election Code, provides that the Election Code applies to all elections held in this state. An exception to the application of the Election Code would apply by its own terms. The omitted law reads:

(b) Unless otherwise provided by this Act, elections shall be held in accordance with the Texas Election Code.

(4) Section 16(d), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to a "confirmation" election. Because the confirmation election occurred in 1985, the revised law omits the reference as executed.

Revised Law

Sec. 8282.164. APPLICABILITY OF CITY ORDINANCES, CODES, RESOLUTIONS, AND RULES. Except as expressly provided, this chapter does not exempt the district from the terms of any applicable ordinances, codes, resolutions, or rules of the city. (Acts 69th Leg., R.S., Ch. 935, Sec. 27 (part).)

Source Law

Sec. 27. Except as expressly provided, this Act does not exempt the district … or from the terms and provisions of any applicable ordinances, codes, resolutions, rules, or regulations of the city.

Revisor's Note

(1) Section 27, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the district is not exempt from the continuing right of supervision of the state, acting through the Texas Department of Water Resources. The revised law omits the provision because, as explained by Revisor's Note (2) to Section 8282.155, the Texas Commission on Environmental Quality is the successor to the Texas Department of Water Resources, and therefore the provision duplicates, in substance, part of Section 12.081, Water Code, which applies to the district. The omitted law reads:

Sec. 27. … [this Act does not exempt the district] from the continuing right of supervision of the state to be exercised by and through the Texas Department of Water Resources … .

(2) Section 27, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the "terms and provisions" of city ordinances, codes, resolutions, rules, or regulations. The revised law omits the reference to "provisions" because "provisions" is included in the meaning of "terms."

[Sections 8282.165-8282.200 reserved for expansion]

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 8282.201. GENERAL FINANCIAL POWERS. The board may:

(1) spend and borrow money;

(2) issue bond anticipation notes and tax anticipation notes;

(3) impose maintenance taxes; and

(4) carry out all acts and exercise all powers provided by Subchapter E, Chapter 49, Water Code. (Acts 69th Leg., R.S., Ch. 935, Sec. 18.)

Source Law

Sec. 18. The board may expend funds, borrow money, issue bond anticipation notes and tax anticipation notes, levy and collect maintenance taxes, and carry out all acts and exercise all powers provided by Subchapter E, Chapter 54, Water Code.

Revisor's Note

(1) Section 18, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the district's authority to expend "funds." Throughout this chapter, the revised law substitutes "money" for "funds" (except where a specific type of fund is indicated) because, in context, the meaning is the same and "money" is the more commonly used term.

(2) Section 18, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to "powers provided by Subchapter E, Chapter 54, Water Code." Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed Subchapter E, Chapter 54, Water Code, and enacted Subchapter E, Chapter 49, Water Code, to govern matters previously governed by the repealed sections. The revised law is drafted accordingly.

Revised Law

Sec. 8282.202. TAX METHOD. (a) The district shall use the ad valorem plan of taxation.

(b) Subchapter G, Chapter 54, Water Code, applies to all matters relating to the imposition of district taxes. (Acts 69th Leg., R.S., Ch. 935, Sec. 21.)

Source Law

Sec. 21. The ad valorem plan of taxation shall be used by the district, and Subchapter G, Chapter 54, Water Code, and the Property Tax Code apply to all matters relating to the levy, assessment, and collection of both current and delinquent taxes of the district.

Revisor's Note

Section 21, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that "the Property Tax Code" applies to the levy, assessment, and collection of "both current and delinquent taxes of the district." The revised law omits the reference to the Property Tax Code because that code (Title 1, Tax Code) applies to the district under Section 1.02, Tax Code. The revised law omits the reference to "current and delinquent taxes" because taxes that have been assessed and levied are either current or delinquent, and the reference does not add to the clear meaning of the law.

Revised Law

Sec. 8282.203. TAX COLLECTOR. (a) The board shall appoint a person as tax collector for the district and may appoint deputies considered necessary.

(b) Each person appointed under this section shall qualify by executing a bond in the amount of $10,000 payable to the district, approved by the board, and conditioned on the faithful performance of the person's duties.

(c) The board shall set the compensation for the tax collector and any deputy tax collector. (Acts 69th Leg., R.S., Ch. 935, Sec. 14.)

Source Law

Sec. 14. (a) The board shall appoint a person as tax collector for the district and may appoint deputies considered necessary.

(b) Each person appointed shall qualify by executing a bond in the amount of $10,000 payable to the district, approved by the board, and conditioned on the faithful performance of his duties.

Revised Law

Sec. 8282.204. USE OF MAINTENANCE TAX. (a) The board may use and pledge the proceeds received from all or any designated portion of the district's maintenance taxes for any lawful purpose, other than the payment of the principal of or interest on bonds. Bonds must be paid from taxes imposed separately to the extent that those bonds are required to be paid from taxes.

(b) The district may not use maintenance taxes for the purpose of maintaining, repairing, operating, or improving any of the works, facilities, and improvements described by Section 8282.153 until the district has complied with Sections 8282.252(a) and (b). (Acts 69th Leg., R.S., Ch. 935, Sec. 20.)

Source Law

Sec. 20. The board may use and pledge the proceeds received from all or any designated portion of the district's maintenance taxes for any lawful purpose, other than the payment of the principal of or interest on bonds. The bonds shall be paid from taxes levied separately to the extent that those bonds are required to be paid from taxes. Also, maintenance taxes may not be used for the purpose of maintaining, repairing, operating, or improving any of the works, facilities, and improvements described by Subsection (b), Section 8, of this Act until the district has complied with Subsection (b), Section 19, of this Act.

Revised Law

Sec. 8282.205. DEPOSIT AND SECURITY OF DISTRICT MONEY. (a) The district's treasurer shall have district money deposited and invested in the district's depository bank or other banks or savings associations selected by the district's authorized investment officers.

(b) To the extent that deposited or invested money is not insured by the Federal Deposit Insurance Corporation, the money must be secured in the manner provided by law for the security of county funds. (Acts 69th Leg., R.S., Ch. 935, Secs. 15(a), (b).)

Source Law

Sec. 15. (a) The treasurer of the district shall have funds of the district deposited, invested, and reinvested in the district's depository bank or other banks or savings associations selected by the authorized investment officers of the district.

(b) To the extent that deposited or invested funds of the district are not insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, the funds shall be secured in the manner provided by law for the security of funds of counties of this state.

Revisor's Note

(1) Section 15(a), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the investment and reinvestment of a district deposit. Throughout this chapter, references to "reinvestment" are omitted from the revised law because "reinvestment" in this context is included in the meaning of "investment."

(2) Section 15(b), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to the "Federal Savings and Loan Insurance Corporation." The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Pub. L. No. 101-73) abolished the Federal Savings and Loan Insurance Corporation and provided for the insurance of the deposits of savings and loan associations by the Federal Deposit Insurance Corporation. The revised law is drafted accordingly.

Revised Law

Sec. 8282.206. INVESTMENT OF DISTRICT MONEY. At the direction of the board or any other authorized district representative or investment officer, district money may be invested in direct or indirect obligations of the United States, the state, or any political subdivision of the state, or may be placed in certificates of deposit of state or national banks or savings and loan associations in this state, if that money is secured in the manner provided for the security of county funds. (Acts 69th Leg., R.S., Ch. 935, Sec. 15(c).)

Source Law

(c) Funds of the district also may be invested and reinvested at the direction of the board or any other authorized representative or investment officer of the district in direct or indirect obligations of the United States, the state, or any county, city, school district, or other political subdivision of the state, or may be placed in certificates of deposit of state or national banks or savings and loan associations within the state, if those funds are secured in the manner provided for the security of funds of counties of this state.

Revisor's Note

Section 15(c), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to "any county, city, school district, or other political subdivision of the state." The revised law omits "county," "city," and "school district" because those terms are included in the meaning of "political subdivision of the state."

[Sections 8282.207-8282.250 reserved for expansion]

SUBCHAPTER F. BONDS

Revised Law

Sec. 8282.251. AUTHORITY TO ISSUE BONDS. The board may issue bonds as provided by general law, including Sections 54.501-54.515 and 54.518-54.521, Water Code. (Acts 69th Leg., R.S., Ch. 935, Sec. 19(a).)

Source Law

Sec. 19. (a) The board may issue bonds as provided by Sections 54.501-54.515, and Sections 54.518-54.521, Water Code, and the general law of this state.

Revised Law

Sec. 8282.252. AUTHORITY TO ISSUE BONDS FOR ROADS AND TURNPIKES. (a) The district may not issue bonds for a purpose described by Section 8282.153 unless the bonds are approved by a vote of a two-thirds majority of the voters voting in the district or the territory to be affected by the bonds.

(b) Bonds, notes, or other district obligations issued or incurred for a purpose described by Section 8282.153 may not exceed one-fourth of the assessed valuation of the real property of the district or the territory to be affected by the bonds.

(c) Sections 49.181, 49.182, and 54.5161, Water Code, do not apply to bonds issued by the district as provided by this section. (Acts 69th Leg., R.S., Ch. 935, Secs. 19(b), (c) (part).)

Source Law

(b) Bonds for the purposes described in Subsection (b), Section 8, of this Act may not be issued by the district except on a vote of a two-thirds majority of the resident property taxpayers voting who are qualified voters of the district or the territory to be affected by the bonds. Bonds, notes, or other obligations of the district issued or incurred for the purposes described in Subsection (b), Section 8, of this Act may not exceed one-fourth of the assessed valuation of the real property of such district or territory.

(c) Sections 54.516, 54.5161, and 54.517, Water Code, do not apply … to bonds issued by the district under the authority of Subsection (b) of this section.

Revisor's Note

(1) Section 19(b), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that certain district bonds must be approved by a two-thirds majority vote of "the resident property taxpayers voting who are qualified voters of the district or the territory to be affected by the bonds." The revised law omits the references to "resident" and "qualified" because Section 11.001, Election Code, provides that to be eligible to vote in an election, a person must be a qualified voter as defined by Section 11.002, Election Code, and be a resident of the territory covered by the election. The revised law omits "property taxpayers" because under Section 52(b), Article III, and Section 3a, Article VI, Texas Constitution, a qualified voter may vote without regard to the person's status as a taxpayer.

(2) Section 19(c), Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, refers to "Sections 54.516, 54.5161, and 54.517, Water Code." The revised law substitutes references to Sections 49.181 and 49.182, Water Code, for Sections 54.516 and 54.517, Water Code, respectively, for the reason stated in the revisor's note to Section 8282.153.

Revised Law

Sec. 8282.253. AUTHORITY TO ISSUE BONDS FOR IMPROVEMENT PROJECTS OR SERVICES. (a) To pay all or part of the costs of an improvement project or service under Section 8282.154, the board may issue bonds in one or more series payable from and secured by ad valorem taxes, assessments, impact fees, revenues, grants, gifts, contracts, or leases or any combination of those sources of money.

(b) Bonds issued under this section may be liens on all or part of the revenue derived from improvements authorized under Section 8282.154, including installment payments of special assessments or from any other source pledged to their payment.

(c) Sections 375.202-375.206, Local Government Code, apply to bonds issued under this section. (Acts 69th Leg., R.S., Ch. 935, Secs. 19(d), (e).)

Source Law

(d) For the payment of all or part of the costs of an improvement project or services under Section 20A of this Act, the board may issue bonds in one or more series payable from and secured by ad valorem taxes, assessments, impact fees, revenues, grants, gifts, contracts, or leases or any combination of those funds. Bonds may be liens on all or part of the revenue derived from improvements authorized under Section 20A of this Act, including installment payments of special assessments or from any other source pledged to their payment.

(e) Sections 375.202 through 375.206, Local Government Code, apply to bonds issued under Subsection (d) of this section.

Revised Law

Sec. 8282.254. OBLIGATIONS. (a) In this section, "obligation" means a bond, note, lease-purchase agreement, or installment sale obligation of the district.

(b) The principal amount of the district's obligations that are payable from assessments imposed by the district may be in an amount that does not exceed the aggregate appraised value of the property in the district, as established by an independent appraisal by a member of the Appraisal Institute.

(c) The appraised value of the property in the district established for ad valorem tax purposes does not limit the principal amount of the obligations that may be issued by the district under Subsection (b).

(d) The city is not required to pay the principal of and interest on an obligation issued by the district. (Acts 69th Leg., R.S., Ch. 935, Sec. 19A.)

Source Law

Sec. 19A. (a) The principal amount of the district's obligations that are payable from assessments imposed by the district may be in an amount that does not exceed the aggregate appraised value of the property in the district, as established by an independent appraisal by a member of the Appraisal Institute.

(b) The appraised value of the property in the district established for ad valorem tax purposes may not be considered a limitation on the principal amount of the obligations that may be issued by the district under Subsection (a) of this section.

(d) In this section, "obligation" means a bond, note, lease-purchase agreement, or installment sale obligation of the district.

Revisor's Note

(End of Chapter)

Section 28, Chapter 935, Acts of the 69th Legislature, Regular Session, 1985, provides that the requirements of Sections 59(d) and (e), Article XVI, Texas Constitution (requiring public notice of the enactment of the statute and compliance with the general laws then in effect relating to consent by political subdivisions to the creation of the district and to the inclusion of land in the district), have been accomplished. Section 7, Chapter 1213, Acts of the 75th Legislature, Regular Session, 1997, contains similar findings relating to the performance of the requirements under the constitution in enacting that chapter. The revised law omits those provisions as executed. The omitted law reads:

[Acts 69th Leg., R.S., Ch. 935]

Sec. 28. The legislature specifically finds and declares that the requirements of Article XVI, Section 59(d) and Section 59(e), of the Texas Constitution, to the extent applicable, have been met and accomplished in due course, time, and order, that all persons and officials required to be notified pursuant thereto have been properly and timely notified, that all approvals required to be obtained pursuant thereto have been obtained, and that the legislature has the authority and power to enact this Act.

[Acts 75th Leg., R.S., Ch. 1213]

Sec. 7. (a) The proper and 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 by the constitution and other laws of this state, including the governor, who has submitted the notice and Act to the Texas Natural Resource Conservation Commission.

(b) The Texas Natural Resource Conservation Commission 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.


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