81C30(3) UM

 

CHAPTER 8283.  GREATER TEXOMA UTILITY AUTHORITY

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 8283.001.  DEFINITIONS ...............................  2

Sec. 8283.002.  NATURE OF DISTRICT ........................  2

Sec. 8283.003.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE ....  3

[Sections 8283.004-8283.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT TERRITORY; ANNEXATION

Sec. 8283.051.  DISTRICT TERRITORY ........................  4

Sec. 8283.052.  ANNEXATION ................................  5

[Sections 8283.053-8283.100 reserved for expansion]

SUBCHAPTER C.  BOARD OF DIRECTORS

Sec. 8283.101.  COMPOSITION OF BOARD; TERMS ...............  8

Sec. 8283.102.  APPOINTMENT OF DIRECTORS BY HOME-RULE

                  MUNICIPALITIES .......................... 10

Sec. 8283.103.  APPOINTMENT OF DIRECTORS BY

                  MUNICIPALITIES OTHER THAN HOME-RULE

                  MUNICIPALITIES .......................... 10

Sec. 8283.104.  QUALIFICATIONS FOR OFFICE ................. 10

Sec. 8283.105.  BOARD VACANCY ............................. 11

Sec. 8283.106.  REMOVAL FROM OFFICE ....................... 11

Sec. 8283.107.  VOTING REQUIREMENT ........................ 12

[Sections 8283.108-8283.150 reserved for expansion]

SUBCHAPTER D.  POWERS AND DUTIES

Sec. 8283.151.  MUNICIPAL UTILITY DISTRICT POWERS ......... 13

Sec. 8283.152.  ACQUISITION AND USE OF PROPERTY ........... 14

Sec. 8283.153.  WATER RIGHTS .............................. 15

Sec. 8283.154.  EMINENT DOMAIN ............................ 15

Sec. 8283.155.  GENERAL CONTRACT POWERS ................... 16

Sec. 8283.156.  WATER, SEWER, SOLID WASTE, OR DRAINAGE

                  CONTRACTS; ELECTION NOT REQUIRED ........ 19

Sec. 8283.157.  TREATMENT OF PAYMENTS UNDER CERTAIN

                  MUNICIPAL CORPORATION CONTRACTS ......... 20

Sec. 8283.158.  STANDARD SPECIFICATIONS FOR FACILITIES

                  IN GRAYSON COUNTY ....................... 20

Sec. 8283.159.  TAX PROHIBITION ........................... 23

[Sections 8283.160-8283.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Sec. 8283.201.  REVENUE BONDS ............................. 24

Sec. 8283.202.  BONDS FOR CERTAIN FACILITIES .............. 24

CHAPTER 8283.  GREATER TEXOMA UTILITY AUTHORITY

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 8283.001.  DEFINITIONS.  In this chapter:

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

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

(3)  "District" means the Greater Texoma Utility Authority.  (Acts 66th Leg., R.S., Ch. 97, Sec. 1 (part); New.)

Source Law

Sec. 1.  … [a … district] … to be known as Greater Texoma Utility Authority, hereinafter called the "district," … .

Revisor's Note

The definitions of "board" and "director" are added to the revised law for drafting convenience and to eliminate frequent, unnecessary repetition of the substance of the definitions.

Revised Law

Sec. 8283.002.  NATURE OF DISTRICT.  (a)  The district is a conservation and reclamation district in Grayson County created under Section 59, Article XVI, Texas Constitution.

(b)  The district is a political subdivision of this state.  (Acts 66th Leg., R.S., Ch. 97, Sec. 1 (part).)

Source Law

Sec. 1.  Under the provisions of Article XVI, Section 59, of the Texas Constitution, a conservation and reclamation district is created in Grayson County, Texas, … which shall be a governmental agency, a political subdivision of the state, and a body politic and corporate. …

Revisor's Note

Section 1, Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to the district as "a governmental agency" and "a body politic and corporate."  The revised law omits those 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.

Revised Law

Sec. 8283.003.  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 Section 59, Article XVI, Texas Constitution.

(c)  The creation of the district is essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution.  (Acts 66th Leg., R.S., Ch. 97, Secs. 1 (part), 2(f).)

Source Law

Sec. 1.  … The creation of the district is declared to be essential to the accomplishment of the purposes of Article XVI, Section 59, of the Texas Constitution.

[Sec. 2]

(f)  It is determined and found that all of the land and other property included within the area and boundaries of the district on creation and later annexed in accordance with this Act will be benefited by the works and projects that are to be accomplished by the district pursuant to the powers conferred by the provisions of Article XVI, Section 59, of the Texas Constitution, and that the district is created to serve a public use and benefit.

Revisor's Note

(1)  Section 2(f), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to land and other property included in the "area and boundaries of the district."  The revised law omits the reference to "area" because, in context, "area" is included in the meaning of "boundaries." 

(2)  Section 2(f), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to land and other property included in the district "on creation and later annexed in accordance with this Act."  The revised law omits the quoted language as unnecessary. The effect of the quoted language is to describe all land and other property included in the district's boundaries at any given time, regardless of whether the land or other property was included in the district's initial boundaries at the time the district was created. The revised law is sufficient to achieve that result.

[Sections 8283.004-8283.050 reserved for expansion]

SUBCHAPTER B.  DISTRICT TERRITORY; ANNEXATION

Revised Law

Sec. 8283.051.  DISTRICT TERRITORY.  The district is composed of the territory that was included in the corporate boundaries of the cities of Denison and Sherman on May 2, 1979, as that territory may have been modified under:

(1)  Section 2 or 4, Chapter 97, Acts of the 66th Legislature, Regular Session, 1979;

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

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

(4)  other law.  (Acts 66th Leg., R.S., Ch. 97, Sec. 2(a); New.)

Source Law

Sec. 2.  (a)  Initially, the district shall comprise all of the territory that is contained within the corporate boundaries of the cities of Denison and Sherman, Texas, on the effective date of this Act.

Revisor's Note

(1)  Section 2(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to the corporate boundaries of the cities of Denison and Sherman "on the effective date of this Act."  Chapter 97 took effect on May 2, 1979, and the revised law is drafted accordingly.

(2)  For the reader's convenience, the revised law adds a reference to the district's authority to change the district's territory, including: (1) Subchapter H, Chapter 54, Water Code, applicable to the district under Section 54.001 of that chapter; (2) Subchapter J, Chapter 49, Water Code, applicable to the district under Sections 49.001 and 49.002 of that chapter; and (3) Section 2 or 4, Chapter 97, Acts of the 66th Legislature, Regular Session, 1979.  The revised law also includes a reference to the general authority of the legislature to enact other laws to change the district's territory.

Revised Law

Sec. 8283.052.  ANNEXATION.  (a)  The district may annex territory only as specified by this section.

(b)  A municipality, by resolution or ordinance adopted by its governing body, may request that the territory then included in its corporate limits be annexed to the  district.  On receipt of the request, the board shall proceed in the manner provided by Subsections (d) and (e).

(c)  Territory that is annexed to a municipality after May 2, 1979, or after annexation of the municipality to the district may be annexed to the district if the board determines the annexation should be considered and proceeds in the manner provided by Subsections (d) and (e).

(d)  Under the circumstances described by this section, the board shall call and hold a public hearing to determine if the territory should be annexed.  Notice of the hearing must be published at least:

(1)  once in a newspaper of general circulation in the area of the district and the territory proposed to be annexed; and

(2)  10 days before the date set for the hearing.

(e)  If at the conclusion of the hearing the board finds that the annexation would be in the best interest of the territory to be annexed, the area in the district, and the inhabitants of both, it shall enter an order to that effect.  The order finally annexes the territory to the district.

(f)  An action to review the annexation of territory to the district may be brought in a district court in the county where the principal office of the district is located.  An annexation may be set aside for fraud or abuse of discretion.  (Acts 66th Leg., R.S., Ch. 97, Secs. 2(b), (c), (d), (e).)

Source Law

(b)  An incorporated city, town, or village, by resolution or ordinance adopted by its governing body, may request that all of the territory then included within its corporate limits be annexed to and become a part of the  district.  On the receipt of this request, the board shall proceed in the manner provided by Subsection (d) of this section.

(c)  An area that is annexed to an incorporated city, town, or village, after the effective date of this Act or after annexation of a city, town, or village to the district, may be annexed to the district if the board of directors determines the annexation should be considered and proceeds in the manner provided by Subsection (d) of this section.

(d)  Under the circumstances described in this section, the board shall call and hold a public hearing to determine if territory should be annexed.  Notice of the hearing shall be published at least once in a newspaper of general circulation in the area of the district and the area proposed to be annexed, such publication to be at least 10 days before the date set for the hearing.  If the board finds that the annexation would be in the best interest of the area to be annexed and the area within the district and the inhabitants of both areas, it shall enter an order to that effect.  The order of the board entered at the conclusion of the public hearing shall also finally annex the territory to the district.  Action to review the annexation of territory to the district may be brought in a district court in the county where the principal office of the district is located, and an annexation may be set aside for fraud or abuse of discretion.  Sections 54.721 and 54.727 of the Water Code are applicable to all annexations.

(e)  Territory may be annexed to the district only as specified in this section.

Revisor's Note

(1)  Sections 2(b) and (c), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refer to an "incorporated city, town, or village."  Throughout this chapter, the revised law substitutes "municipality" for "city," "town," or "village" because the meaning of "municipality" includes cities, towns, and villages and because that is the term used in the Local Government Code.  The revised law omits "incorporated" because under the Local Government Code all municipalities must be incorporated.

(2)  Section 2(d), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that "Sections 54.721 and 54.727 of the Water Code are applicable to all annexations."  The revised law omits the reference to those sections because they were repealed by Chapter 715, Acts of the 74th Legislature, Regular Session, 1995.

Revisor's Note

(End of Subchapter)

Section 4(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that, to exclude land or other property, the district shall use the procedures prescribed in Sections 54.701 through 54.710, Water Code.  The revised law omits that provision as unnecessary. Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed those provisions and enacted Subchapter J, Chapter 49, Water Code, to govern the exclusion of land from a municipal utility district and certain other districts.  An express reference to Subchapter J, Chapter 49, Water Code, is 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. 4.  (a)  With respect to the exclusion of land or other property, the district shall follow the procedures prescribed in Sections 54.701 through 54.710 of the Water Code where applicable… .

[Sections 8283.053-8283.100 reserved for expansion]

SUBCHAPTER C.  BOARD OF DIRECTORS

Revised Law

Sec. 8283.101.  COMPOSITION OF BOARD; TERMS.  (a)  The board consists of at least six and not more than nine directors appointed as follows:

(1)  three directors appointed by the governing body of the City of Denison;

(2)  three directors appointed by the governing body of the City of Sherman; and

(3)  any directors appointed under Sections 8283.102 and 8283.103.

(b)  Except for a director appointed under Section 8283.103, a director serves a two-year term that begins January 1 following the director's appointment.

(c)  A director's term may not be shortened because of the annexation of a municipality under Section 8283.102 or 8283.103.

(d)  The City of Denison or the City of Sherman by ordinance may provide for staggered terms for directors it appoints, but the term of an incumbent may not be shortened or be longer than two years.  (Acts 66th Leg., R.S., Ch. 97, Secs. 6(a) (part), (d), (f) (part).)

Source Law

(a)  …  Each city may, by ordinance, provide for terms of office of the directors it appoints to be on a staggered term basis, but in no event shall the term of an incumbent be shortened or be for a period of more than two years.

(d)  The maximum number of directors of the district shall be nine, of which number three shall always be appointed by each of the cities of Denison and Sherman.  No director appointed shall have his or her term shortened by reason of any annexation of a city under Subsection (b) or (c) of this section.

(f)  The term of office of all directors shall begin on January 1 following their appointment, and … .  Except for directors appointed under Subsection (c) of this section and the initial directors appointed under the provisions of Subsection (a) of this section, directors shall serve for a period of two years and until their successors have qualified. …

Revisor's Note

(1)  Section 6(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides for the appointment of initial directors.  The revised law omits the provision as executed. The omitted law reads:

Sec. 6.  (a) Following the effective date of this Act, the governing body of the city of Denison shall appoint three directors to Places 1, 2, and 3, and the governing body of the city of Sherman shall appoint three directors to Places 4, 5, and 6, and the number of directors subject to appointment by each of such cities shall be the same. …

(2)  Section 6(f), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides an exception to the normal term of office for "the initial directors appointed under the provisions of Subsection (a) of this section."  The revised law omits the quoted language as executed.

(3)  Section 6(f), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that directors shall serve "until their successors have qualified."  The revised law omits the quoted language because Section 17, Article XVI, Texas Constitution, requires an officer in this state to continue to perform the officer's official duties until a successor has qualified.

Revised Law

Sec. 8283.102.  APPOINTMENT OF DIRECTORS BY HOME-RULE MUNICIPALITIES.  (a)  If a home-rule municipality is annexed, the governing body of the municipality shall appoint a director whose term begins January 1 following the annexation.

(b)  If more than two home-rule municipalities are annexed, those municipalities are collectively entitled to appoint two directors and shall designate their directors by any method agreed to by those municipalities.  (Acts 66th Leg., R.S., Ch. 97, Sec. 6(b).)

Source Law

(b)  In the event a home-rule city is annexed, the governing body of such annexed city shall appoint a director whose term shall commence on January 1 next following the annexation provided that in the event more than two home-rule cities are annexed, then such cities shall collectively be entitled to the appointment of two directors and those home-rule cities shall designate their representatives by any method agreeable to them.

Revised Law

Sec. 8283.103.  APPOINTMENT OF DIRECTORS BY MUNICIPALITIES OTHER THAN HOME-RULE MUNICIPALITIES.  Municipalities, other than home-rule municipalities, are collectively entitled to appoint one director and shall designate their director by any method agreed to by those municipalities. (Acts 66th Leg., R.S., Ch. 97, Sec. 6(c).)

Source Law

(c)  Incorporated cities, towns, or villages, other than a home-rule city, shall collectively be entitled to the appointment of one director and those cities, towns, or villages, shall designate their representative by any method agreeable to them.

Revised Law

Sec. 8283.104.  QUALIFICATIONS FOR OFFICE.  (a)  Each director must be a qualified voter of the municipality that appoints the director.

(b)  An officer, employee, or member of the governing body of a municipal corporation may not be a director.  (Acts 66th Leg., R.S., Ch. 97, Secs. 6(f) (part), (h).)

Source Law

(f)  … each director shall be a qualified elector of the city that appoints him or her. …

(h)  A person may not be a director if he or she is an officer, employee, or member of the governing body of a municipal corporation.

Revisor's Note

Section 6(f), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that a district director must be a "qualified elector" of the city that appoints the director.  The revised law substitutes "voter" for "elector" because "voter" is the term used in the Election Code.

Revised Law

Sec. 8283.105.  BOARD VACANCY.  A vacancy in the office of director shall be filled for the unexpired term, if applicable, by the governing body of the municipality that appointed the previous director.  (Acts 66th Leg., R.S., Ch. 97, Sec. 6(f) (part).)

Source Law

(f)  … Vacancies in the office of director shall be filled for the unexpired term, if applicable, by the governing body of the city that appointed the previous director.

Revised Law

Sec. 8283.106.  REMOVAL FROM OFFICE.  (a)  Under procedures adopted by board rule, the board may remove a director from office only for malfeasance in office.

(b)  The procedures must be designed to guarantee due process to the director.  (Acts 66th Leg., R.S., Ch. 97, Sec. 6(i).)

Source Law

(i)  A director may be removed by the board of directors of the district only on the grounds of malfeasance in office.  A director shall be removed under procedures adopted by the board in its rules, and the procedures adopted by the board for removal of a director shall be designed to guarantee due process to the director.

Revised Law

Sec. 8283.107.  VOTING REQUIREMENT. A majority vote of the board is required to adopt any measure. (Acts 66th Leg., R.S., Ch. 97, Sec. 6(g).)

Source Law

(g)  A majority vote of the members of the board of directors shall be required for the adoption of any measure.

Revisor's Note

(End of Subchapter)

(1)  Section 6(e), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, requires that a director execute a $10,000 performance bond payable to the district and that the bond be approved by the board of directors.  The revised law omits the bond provision because it duplicates, in substance, part of Section 49.055, Water Code.  The omitted law reads:

(e)  As soon as practicable after a director is elected or appointed he shall execute a bond for $10,000 payable to the district and conditioned on the faithful performance of his duties. All bonds of the directors shall be approved by the board… .

(2)  Section 6(e), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, requires each director to take the constitutional oath of office.  The revised law omits that provision because it duplicates, in substance, Section 1, Article XVI, Texas Constitution.  The omitted law reads:

(e)  … Each director shall take the oath of office prescribed by the constitution for public officers… .

(3)  Section 6(e), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, requires that a director's bond and oath be filed with the district and retained in the district's records.  The revised law omits that provision because it duplicates part of Section 49.055(d), Water Code.  The omitted law reads:

(e)  … The bond and oath shall be filed with the district and retained in its records.

[Sections 8283.108-8283.150 reserved for expansion]

SUBCHAPTER D.  POWERS AND DUTIES

Revised Law

Sec. 8283.151.  MUNICIPAL UTILITY DISTRICT POWERS.  Except as otherwise provided by this chapter, the district has the rights, powers, privileges, and functions conferred and imposed by the general law applicable to a municipal utility district created under Section 59, Article XVI, Texas Constitution, including those conferred by Chapters 30, 49, and 54, Water Code.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(a) (part); New.)

Source Law

Sec. 3.  (a)  Except as otherwise provided in this Act, the district shall have and may exercise all the rights, powers, privileges, authority, and functions conferred and imposed by the general laws of this state applicable to municipal utility districts created under Article XVI, Section 59, of the Texas Constitution, including without limitation those conferred by Chapter 54, Water Code, as amended, and all of the powers conferred by Chapter 30 of the Water Code… .

Revisor's Note

(1)  Section 3(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, 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 "rights, powers, [and] privileges."

(2)  Section 3(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, grants the district certain powers, including "without limitation" those conferred by Chapter 54, Water Code, "as amended," and Chapter 30 of the Water Code.  The revised law omits "without limitation" because Section 311.005(13), Government Code (Code Construction Act), provides that "includes" and "including" are terms of enlargement and not limitation and do not create a presumption that components not expressed are excluded.

In addition, the revised law omits the reference to "as amended" because under Section 311.027, Government Code (Code Construction Act), a reference to a statute applies to all reenactments, revisions, or amendments of that statute unless expressly provided otherwise.

(3)  Section 3(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to Chapter 54, Water Code.  For the reader's convenience, the revised law adds a reference to Chapter 49, Water Code, because Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, repealed many provisions of Chapter 54 and enacted similar provisions in Chapter 49, Water Code, which applies to the district under Sections 49.001 and 49.002 of that chapter.

Revised Law

Sec. 8283.152.  ACQUISITION AND USE OF PROPERTY.  The district may operate, control, purchase, construct, lease, or acquire, inside or outside the boundaries of the district, property, works, facilities, or improvements, whether previously existing or to be made, constructed, or acquired, that the board finds necessary to carry out the powers granted by this chapter or general law.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Source Law

(b)  The district has the following rights, powers, privileges, and functions:

(1)  the authority to operate, control, purchase, construct, lease, or acquire property, works, facilities, and improvements, whether previously existing or to be made, constructed, or acquired, within or without the boundaries of the district that its governing body finds necessary or required to carry out the authority granted by this Act and the general laws;

…

Revisor's Note

(1)  Section 3(b), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district "has the following rights, powers, privileges, and functions" and that the district has "the authority to" perform various acts.  Throughout this chapter, the revised law substitutes "may" for the quoted language because the phrases have the same meaning, and "may" is consistent with modern usage.  See, for example, Section 311.016(1), Government Code (Code Construction Act), which construes "may."

(2)  Section 3(b)(1), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to actions the district's board finds "necessary or required" to carry out its authority.  The revised law omits "required" because, in context, it is included in the meaning of "necessary."

Revised Law

Sec. 8283.153.  WATER RIGHTS.  The district may acquire, develop, and use rights to groundwater or surface water.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Source Law

(b)  [The district has … :]

…

(3)  the authority to acquire, develop, and utilize underground or surface water rights;

…

Revisor's Note

Section 3(b)(3), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to "underground . . . water" rights.  The revised law substitutes "groundwater" for "underground water" because that is the more commonly used term and is the term used by Chapter 36, Water Code, which applies to groundwater conservation districts (another type of conservation and reclamation district).

Revised Law

Sec. 8283.154.  EMINENT DOMAIN.  To carry out a district power or purpose, the district, in the manner provided by Chapter 49, Water Code, may exercise the power of eminent domain to acquire land, an easement, or other property inside or outside the district's boundaries.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Source Law

(b)  …

…

(6)  the district may acquire land, easements, or other property within or without its boundaries for the accomplishment of its powers and purposes through the exercise of eminent domain in the manner prescribed by Sections 54.212(b) and (c) and Section 54.213 of the Water Code;

…

Revisor's Note

Section 3(b)(6), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to the district's eminent domain power under Sections 54.212(b) and (c) and 54.213, Water Code.  Those sections were repealed by Chapter 715, Acts of the 74th Legislature, Regular Session, 1995, which enacted similar provisions in Chapter 49, Water Code, to govern the exercise of eminent domain power by certain districts, including the district.  The revised law is drafted accordingly.

Revised Law

Sec. 8283.155.  GENERAL CONTRACT POWERS.  (a)  The district may enter into a contract with a person, including a political subdivision, on terms the board considers desirable, fair, and advantageous for:

(1)  the purchase or sale of raw or treated water;

(2)  the purchase, lease, use, management, control, or operation of water treatment or distribution facilities or sewer collection and treatment facilities, all or part of the facilities or systems owned by the other political subdivision, in accordance with terms mutually agreed on by the governing bodies of the contracting parties; or

(3)  planning, making preliminary surveys, investigations, or feasibility reports, engineering, or reports of any kind.

(b)  A contract for the acquisition of an existing water or sewer facility may be made on terms approved by the contracting parties.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part).)

Source Law

(b)  [The district has … :]

…

(2)  the authority to enter into contracts with persons, public or private corporations, municipal corporations, political subdivisions, agencies, departments, or instrumentalities of the state or federal government, or others, on terms and conditions the board of directors deem desirable, fair, and advantageous:

(A)  for the purchase or sale or both of raw or treated water;

…

(C)  for the purchase, lease, use, management, control, or operation of water treatment or distribution as well as sewer collection and treatment facilities, all or part of the facilities or systems owned by such other political subdivisions, in accordance with terms and conditions as are mutually agreed upon by the governing bodies of the contracting parties;

(D)  for the purposes of planning, making preliminary surveys, investigations, or feasibility reports, engineering, and reports of any kind or character;

…

(5)  … both contracts for the acquisition of an existing water or sewer facility may be made on terms approved by the contracting parties;

…

Revisor's Note

(1)  Section 3(b)(2), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, refers to the power of the district to enter into contracts with persons, "public or private corporations, municipal corporations, political subdivisions, agencies, departments, or instrumentalities of the state or federal government, or others."  The revised law omits the quoted language other than the reference to "political subdivisions" because under Section 311.005(2), Government Code (Code Construction Act), "person" is defined to include any legal entity.  Although the term "person" also includes a legal entity such as a political subdivision, the revised law retains the reference to "political subdivision" to clarify a secondary reference to "such other political subdivisions" that occurs subsequently in the subsection without a corresponding reference to "person."

(2)  Section 3(b)(2), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may enter into a contract on certain "terms and conditions." The revised law omits the references to "conditions" because "conditions" is included in the meaning of "terms."

(3)  Section 3(b)(2)(B), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may contract for the transportation, treatment, and disposal of certain wastes of the district and others, including for the purposes of Chapter 30, Water Code.  The revised law omits that provision because it duplicates, in substance, Section 49.213(c)(2), Water Code.  The revised law omits the reference to Chapter 30, Water Code, because that reference duplicates an earlier express reference under Section 3(a) of Chapter 97 (revised in this chapter as part of Section 8283.151) to the district's powers under Chapter 30, Water Code.  The omitted law reads:

(b)  [The district has … :

…

(2)  the authority to enter into contracts … :]

…

(B)  for the transportation, treatment, and disposal of its domestic, industrial, or communal wastes or the transportation, treatment, and disposal of domestic, industrial, or communal wastes of others, to include the purposes of Chapter 30, Water Code, the provisions of which are expressly made applicable to the district;

…

(4)  Section 3(b)(2)(D), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may contract for reports of any "kind or character."  The revised law omits "character" because, in context, "character" is included in the meaning of "kind."

(5)  Section 3(b)(5), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, permits the district to acquire, improve, extend, or construct certain systems.  The revised law omits that provision because it duplicates, in substance, Section 54.201(b), Water Code, which applies to the district under Section 54.001 of that chapter.  The omitted law reads:

(b)  [The district has … :]

…

(5)  the specific authority to acquire existing water or sewer systems or both, and to improve and extend those systems or to construct water or sewer systems or both. …

(6)  Section 3(b)(5), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, states that district construction contracts are subject to competitive bids.  The revised law omits that provision because Subchapter I, Chapter 49, Water Code, contains the competitive bidding requirements that apply to municipal utility districts.  That subchapter applies to the district under Sections 49.001 and 49.002, Water Code.  The omitted law reads:

(b)  …

…

(5)  … Construction contracts shall be subject to competitive bids, … .

Revised Law

Sec. 8283.156.  WATER, SEWER, SOLID WASTE, OR DRAINAGE CONTRACTS; ELECTION NOT REQUIRED.  The district and a municipal corporation or other political subdivision may enter into a water, sewer, solid waste, or drainage contract or any combination of those contracts without the necessity of an election by any contracting party to approve the contract.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(c).)

Source Law

(c)  No election shall be required in the district or in any municipal corporations or other political subdivisions for approval of water, sewer, solid waste, or drainage contracts or any combination of those contracts, but the contracts may be entered into without the necessity of an election by any contracting party.

Revised Law

Sec. 8283.157.  TREATMENT OF PAYMENTS UNDER CERTAIN MUNICIPAL CORPORATION CONTRACTS.  A payment by a municipal corporation for the purchase of water or the treatment and disposal of sewage is a maintenance and operating expense of the utility system or combined systems of the municipal corporation unless the contract:

(1)  provides for the municipal corporation to acquire an ownership interest in the facilities; or

(2)  makes other provisions. (Acts 66th Leg., R.S., Ch. 97, Sec. 3(d).)

Source Law

(d)  Payments by a municipal corporation for the purchase of water or the treatment and disposal of sewage shall be a maintenance and operating expense of the utility system or combined systems of the municipal corporation unless the contract:

(1)  provides for the municipal corporation to acquire an ownership interest in the facilities; or

(2)  makes other contractual provisions.

Revised Law

Sec. 8283.158.  STANDARD SPECIFICATIONS FOR FACILITIES IN GRAYSON COUNTY.  (a)  In this section, "commission" means the Texas Commission on Environmental Quality or its successor.

(b)  Subject to Subsection (f), for area in Grayson County, the district by order may adopt standard specifications for facilities designed or constructed to:

(1)  store, treat, or transport water for domestic, municipal, or industrial purposes to ensure that the facilities are adequate in design to serve the needs of the area's inhabitants;

(2)  collect, treat, and dispose of sewage; or

(3)  dispose of solid waste.

(c)  Before the specifications become final, the board must hold a public hearing.  The board must give notice of the hearing to the commission and must publish in a newspaper of general circulation in the area notice of the hearing one time at least 10 days before the date of the hearing so that any interested party may present evidence for or against a proposed specification.

(d)  An appeal of an order adopting standard specifications may be made to a district court of Grayson County.  The substantial evidence rule applies to the appeal.

(e)  The district is entitled to seek an injunction against:

(1)  the construction of a facility, including an extension to an existing facility, if the construction does not meet the district's standard specifications; or

(2)  the operation of a facility if construction has begun and the facility does not meet those specifications.

(f)  A standard specification adopted under this section does not apply to an area that, on the date the order is adopted, is located inside the corporate boundaries or the extraterritorial jurisdiction of a municipality unless approved by the governing body of the municipality.

(g)  The district shall file the standard specifications with the commission.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(b) (part); New.)

Source Law

(b)  …

…

(7)  as to area within Grayson County, the district may establish standard specifications for facilities that are designed or constructed to provide (A) storage, treatment, or transportation of water for domestic, municipal, or industrial purposes so as to ensure that such facilities are adequate in design to serve the needs of the inhabitants of the area, or (B) the collection, treatment, and disposal of sewage, or (C) for the disposal of solid wastes, any one or all, but in no event shall such specifications be made applicable to that area included at the time of promulgation within the corporate or extraterritorial boundaries of any incorporated municipality without the approval of the governing body of such municipality.  Before the specifications become final, the board shall hold a public hearing, after giving notice to the Texas Department of Water Resources and the Texas Department of Health or their successors, and publication of notice in a newspaper of general circulation in the area one time at least 10 days before the date of the hearing in order that any interested party may present evidence for or against any proposed specifications.  Appeal from an order adopting standard specifications may be made to the district court of Grayson County, and the substantial evidence rule shall apply.  The district shall be entitled to seek injunctive relief against the construction of any facilities, including extensions to any existing facilities, or if construction has commenced after the promulgation of the specifications to seek injunctive relief against the operation of the facilities that do not meet the standard specifications it has approved.  The standard specifications, when approved, shall be filed with the Texas Department of Water Resources.

Revisor's Note

(1)  Section 3(b)(7), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district "may establish" standard specifications.  The revised law substitutes "by order may adopt" for "may establish" to conform to other related language in Section 3(b)(7) referring to an appeal from an "order adopting standard specifications."

(2)  Section 3(b)(7), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, requires the district to give the Texas Department of Water Resources and the Texas Department of Health or their successors notice of a hearing to adopt standard specifications.  The revised law substitutes for the references to those agencies references to "the commission," meaning the Texas Commission on Environmental Quality, because the commission is the successor agency with the relevant authority.

(3)  Section 3(b)(7), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may seek to enjoin the operation of a facility if construction of the facility has begun "after the promulgation of the [standard] specifications."  The revised law omits the quoted language as unnecessary because an order adopting standard specifications may be enforced only after it is adopted.

(4)  The definition of "commission" is added to the revised law for drafting convenience and to eliminate unnecessary repetition of the substance of the definition.

Revised Law

Sec. 8283.159.  TAX PROHIBITION.  The district may not impose a tax.  (Acts 66th Leg., R.S., Ch. 97, Sec. 3(e).)

Source Law

(e)  The district may not levy taxes.

Revisor's Note

Section 3(e), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, prohibits the "levy" of taxes.  The revised law substitutes "impose" for "levy" because "impose" is the term generally used in Title 1, Tax Code, and includes the levy of a tax.

Revisor's Note

(End of Subchapter)

Section 3(b)(4), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may perform a right or power granted under Chapter 97 or general law.  The revised law omits that provision because a right or power granted under this chapter or general law applies on its own terms.  The omitted law reads:

(b)  [The district has the following rights, powers … :]

…

(4)  the performance of any of the rights or powers granted in this Act and the general laws;

…

[Sections 8283.160-8283.200 reserved for expansion]

SUBCHAPTER E.  BONDS

Revised Law

Sec. 8283.201.  REVENUE BONDS.  The district may issue revenue bonds to carry out any of its powers, functions, or obligations.  (Acts 66th Leg., R.S., Ch. 97, Sec. 5 (part).)

Source Law

Sec. 5.  The district may issue revenue bonds for the purpose of carrying out any of its powers, functions, and obligations, and … .

Revisor's Note

Section 5, Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may pledge district revenue to the payment of revenue bonds issued by the district. The revised law omits the provision because it duplicates, in substance, Section 54.503, Water Code, which applies to the district under Section 54.001 of that chapter.  The omitted law reads:

Sec. 5.  [The district] … may pledge all or any part of the revenues of the district to the payment thereof… .

Revised Law

Sec. 8283.202.  BONDS FOR CERTAIN FACILITIES.  If the district operates a facility under contract with a municipal corporation, it may, if the contract permits the issuance, issue bonds to improve or extend the facility.  (Acts 66th Leg., R.S., Ch. 97, Sec. 5 (part).)

Source Law

Sec. 5.  …  In the event the district is operating facilities under contract with a municipal corporation, it may, if permitted by the contract, issue bonds to improve or extend such facilities.

Revisor's Note

(End of Chapter)

(1)  Section 3(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that any general law relating to municipal utility districts is adopted and incorporated by reference.  The revised law omits that provision because it is not necessary to duplicate by means of adoption and incorporation the substance of general laws applicable to the district.  The omitted law reads:

(a)  …  All these general laws are adopted and incorporated by reference with the same effect as if incorporated in full by this Act, but … .

(2)  Section 3(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that Chapter 97 prevails over any general law in conflict or inconsistent with that chapter.  The revised law omits that provision because it duplicates, in substance, Section 311.026(b), Government Code (Code Construction Act).  The omitted law reads:

(a)  … to the extent that the provisions of any of those general laws may be in conflict or inconsistent with the provisions of this Act, the provisions of this Act prevail.

(3)  Section 4(a), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, requires an election to confirm the creation of the district and provides procedures for the election. The revised law omits that provision as executed.  The omitted law reads:

(a)  … Prior to the issuance and delivery of the initial series of bonds or other obligations by the district, it shall be necessary for the board to call and hold, after public notice, an election on the question of whether the creation of the district shall be confirmed.  A majority vote of the participating electors shall be required for such confirmation and in the event the creation of the district is not confirmed at an election held within five years from the effective date of this Act, the district shall be abolished.

For this subsection, "notice" shall be published once a week for two consecutive weeks in a newspaper with general circulation in the county or counties in which the district is to be located. The first publication of notice shall be at least 14 days before the date set for the election or hearing on exclusions. The notice for election shall state the time, date, and place or places for holding the election and the proposition to be voted on.

(4)  Section 4(b), Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that the district may "be abolished in the manner provided by Chapter 541, Acts of the 51st Legislature, 1949, as amended (Article 1118n-5, Vernon's Texas Civil Statutes)."  Although Section 1, Chapter 227, Acts of the 76th Legislature, Regular Session, 1999, codified Article 1118n-5 in Subchapter E, Chapter 1502, Government Code, Subchapter E, Chapter 1502, Government Code, was subsequently repealed by Section 47, Chapter 1064, Acts of the 76th Legislature, Regular Session, 1999.  The revised law therefore omits the reference to the manner of abolishing the district and also to the related authority to abolish the district, as there is no procedure remaining to govern such an action.  The omitted law reads:

(b)  The district may be abolished in the manner provided by Chapter 541, Acts of the 51st Legislature, 1949, as amended (Article 1118n-5, Vernon's Texas Civil Statutes), if its outstanding indebtedness or obligations have been assumed as provided in that law and the area of the district is totally within the boundaries of incorporated municipalities.

(5)  Section 7, Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, contains legislative findings relating to the performance of certain requirements under Section 59(d), Article XVI, Texas Constitution, and to the authority of the legislature to enact Chapter 97.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 7.  The legislature specifically finds and declares that the requirements of Article XVI, Section 59(d), of the Texas Constitution have been performed and accomplished in due course, time, and order, and that the legislature has the power and authority to enact this Act.

(6)  Section 4, Chapter 398, Acts of the 68th Legislature, Regular Session, 1983, amending Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that Chapter 398 does not apply to actions previously taken by the district and validates certain actions previously taken by the board. The revised law omits that provision as executed.  The omitted law reads:

Sec. 4.  The amendments made by this Act to Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, may not be construed to impair the validity of actions previously taken by the district.  Actions previously taken by the board relating to the execution of contracts with cities and counties and the issuance of bonds are ratified, validated, and confirmed; however, this section may not be construed to validate bonds issued by the district that have not been approved by the attorney general before the effective date of this Act.

(7)  Section 5, Chapter 398, Acts of the 68th Legislature, Regular Session, 1983, amending Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, provides that  Chapter 398 does not apply to certain matters being litigated on the effective date of Chapter 398.  The revised law omits that provision as executed.  The omitted law reads:

Sec. 5.  This Act does not apply to any matter relating to the location and siting of a sanitary landfill that on the effective date of this Act is involved in litigation or in a proceeding before a state agency, regardless of the outcome of that litigation or proceeding.  The litigation or proceeding is governed by Chapter 97, Acts of the 66th Legislature, Regular Session, 1979, as that law existed immediately before the effective date of this Act.