Law:Title 6. Water And Wastewater. Subtitle C. Special Utility Districts from Chapter 7208. Parker County Utility District No. 1 (Texas)

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Subtitle C. Special Utility Districts

Contents

Chapter 7208. Parker County Utility District No. 1

Subchapter A. General Provisions

Section 7208.001.  Definitions.

In this chapter:

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

(2)  "Bond" means any interest-bearing obligation, including a bond, note, debenture, certificate, warrant, security, interim certificate or receipt, or other evidence of debt issued by the district, whether general or special, negotiable or nonnegotiable in form, in bearer or registered form, temporary or permanent in form, or with or without interest coupons.

(3)  "Customer" means a wholesale or direct retail user of water, wastewater, or other services provided by the district.

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

(5)  "District" means the Parker County Utility District No. 1.

(5-a)  "Enterprise fund" means a fund used to account for operations:

(A)  that are financed and operated in a manner similar to a private business enterprise and for which the intent of the board is that the costs, including depreciation, of providing goods or services to the public on a continuing basis be financed or recovered primarily through user charges; or

(B)  for which the board has decided that periodic determination of revenues earned, expenses incurred, or net income earned is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.

(6)  "Local government" means a municipality, a county, or an entity created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution.

(7)  "Member entity"  means a public entity or private utility entity that:

(A)  provides retail utility service or regulates water, wastewater, sewage, or solid waste in the district; and

(B)  enters into a contract with the district to provide or receive wholesale service.

(7-a)  "Operating unit" means a separately run unit established by action of the board that runs as an enterprise fund separate from other enterprise funds owned or operated by the district.

(8)  "Participant entity" means a public entity or private utility entity that:

(A)  provides utility service inside the boundaries of the entity; and

(B)  contracts with the district for the construction of and payment for water, wastewater, or other utility service projects to be financed or provided by the district.

(8-a)  "Retail unit" means any unit in which the district provides retail service for a given certificate of public convenience and necessity or bounded service area.  Each retail unit shall be considered an operating unit.

(9)  "Service area"  means the territory inside the district and inside the corporate limits or defined boundaries of all member entities, participant entities, and customers of the district, including the areas served by the member entities, participant entities, and customers.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1201, Sec. 1, eff. June 19, 2009.



Section 7208.002.  Nature Of District.

The district is a regional wastewater district created under Section 59, Article XVI, Texas Constitution, and is essential to accomplish the purposes of that provision.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.003.  Purpose.

The district is created to:

(1)  purchase, own, hold, lease, or otherwise acquire  water distribution facilities, wastewater collection facilities, or other facilities required to facilitate the district's operations;

(2)  build, operate, and maintain facilities to treat, transport, and store water, wastewater, or other products necessary for district operations;

(3)  protect, preserve, and restore the purity and sanitary condition of water in the district; and

(4)  provide other utilities in the district if the utilities are not otherwise provided.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1201, Sec. 2, eff. June 19, 2009.



Section 7208.004.  Findings Of Benefit And Public Purpose.

(a) All land and other property included in the district will benefit from the improvements, works, and projects that are to be accomplished by the district under the powers conferred by this chapter and Section 59, Article XVI, Texas Constitution.

(b)  The district benefits the state by:

(1)  contributing to economic development and diversification;

(2)  decreasing the rates of unemployment and underemployment;

(3)  stimulating agricultural innovation;

(4)  fostering enterprise growth based on agriculture; and

(5)  contributing to the development or expansion of transportation and commerce.

(c)  The accomplishment of the purposes of the district benefits the people, property, and industry of the state.  The district is performing an essential public function under the Texas Constitution by accomplishing the purposes of the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.005.  District Territory.

(a) The district is composed of the territory described by Section 1.04, Chapter 1273, Acts of the 75th Legislature, Regular Session, 1997, as that territory may have been modified under:

(1)  Subchapter B or its predecessor statutes, Sections 2.17 and 6.01, Chapter 1273, Acts of the 75th Legislature, Regular Session, 1997;

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

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

(4)  Subchapter H, Chapter 65, Water Code; or

(5)  other law.

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

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

(2)  the legality or operation of the district or its board.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.006.  Existing Obligations And Rights Of Other Entities Preserved.

This chapter does not alter any existing permit, contract, or other obligation or impair the right of any entity to own, operate, maintain, or otherwise use, provide, or control water, wastewater, solid waste, or liquid waste under the entity's governing law.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Subchapter B. Adding Territory Or New Member Entities

Section 7208.051.  Adding Territory Of Member Entities.

On request by a member entity, the district boundaries may be expanded to include additional or the remaining territory of the member entity if:

(1)  the boundaries of the member entity are contiguous to the district boundaries; and

(2)  the requested expansion is approved by a three-fourths majority vote of the board.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.052.  Adding New Member Entities.

(a) On receipt of a petition submitted by the governing body of a local government, another political subdivision, or a private entity, including a water supply corporation, the board may add a member entity to the district as provided by this section.

(b)  A petition must be submitted in the manner and form required by the district bylaws.

(c)  On receipt of a petition, the board shall give notice and hold a hearing on the petition to determine if adding the member entity to the district:

(1)  will benefit the territory or service area in the member entity; and

(2)  is in the best interests of the district.

(d)  If the board determines that the proposed member entity  should be added to the district, the board shall issue an order:

(1)  adding the proposed member entity and its territory or service area to the district;

(2)  making the member entity and its territory or service area subject to the privileges, duties, assets, and financial obligations of the district in the same manner as other member entities; and

(3)  requiring the member entity to reimburse the existing member entities or directly reimburse the district an amount that is an equitable pro rata share of the costs paid by the existing member entities or the district in creating and operating the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.053.  Appointment Of Directors By New Member Entity. If

the board issues an order under Section 7208.052(d) adding a member entity to the district, the governing body of the member entity shall appoint the appropriate number of directors to the board as provided by Section 7208.103.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Subchapter C. Board Of Directors

Section 7208.101.  Governing Body.

The district is governed by a board of directors.  The board has exclusive authority to manage the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.102.  Terms.

Directors serve staggered four-year terms beginning May 1 of the year in which the director is appointed.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.103.  Appointment Of Directors.

(a) Not earlier than April 1 or later than April 30 of each year, the appropriate number of directors, if any, shall be appointed to the board as provided by Subsection (b).

(b)  Each member entity shall appoint:

(1)  one director if the number of member entities is at least six;

(2)  two directors if the number of member entities is at least three but less than six;

(3)  three directors if there are two member entities; or

(4)  six directors if there is one member entity.

(c)  A participant entity or customer may not appoint a director.

(d)  The appointment of a director is not valid unless the appointment is made as provided by this subchapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.104.  Qualifications For Office.

A person is qualified to serve as a director if the person:

(1)  is at least 18 years of age;

(2)  is a qualified voter who resides in the district;

(3)  qualifies to serve as a director by taking the oath of office;

(4)  is eligible to serve as a director under Subchapter C, Chapter 49, Water Code, except as otherwise provided by this section; and

(5)  verifies compliance with the requirements of this section.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.105.  Ex Officio Directors.

(a) The county judge of Parker County, or a person designated by that judge, serves as an ex officio director.  An ex officio director may vote on any matter considered by the board.

(b)  The board may appoint or elect other ex officio directors and provide for the powers and duties of ex officio directors in the bylaws or rules of the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.106.  Vacancy.

(a) Any time after a board vacancy occurs, the governing body of the appropriate member entity shall fill the vacancy by appointment.

(b)  The member entity shall provide notice of the appointment to the board not later than six hours before the first board meeting following the appointment.

(c)  The appointment is effective on the date notice is received by the board.  If the notice is not provided, the appointment is not effective until after the first board meeting following the appointment.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.107.  Removal From Office.

A director may be removed for any reason:

(1)  by the governing body of the member entity that appointed the director; or

(2)  if three-fourths of the directors vote to remove the director.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.108.  Compensation; Expenses.

(a) Except as provided by Subsection (b), a director may not receive compensation for serving on the board.

(b)  A director may receive reimbursement for travel or other expenses reasonably incurred by the director while acting on behalf of the district.  The board may adopt reasonable policies governing the reimbursement of director expenses, including a requirement that the director provide written verification of expenses.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.109.  Officers.

(a) Each year at the first board meeting following the appointment of directors under Section 7208.103, the board shall elect from its members a president, a vice president, a secretary, a treasurer, and any other officer the board determines is necessary.

(b)  The president is the chief executive officer of the district.

(c)  The vice president may perform the duties and exercise the powers of the president if the president is absent or fails, refuses, or is unable to act.

(d)  The board secretary or an assistant secretary:

(1)  shall keep a record of the minutes of board meetings;

(2)  shall maintain the official district records; and

(3)  may certify the accuracy and authenticity of any actions, proceedings, minutes, or records of the board or the district.

(e)  The board may provide for additional powers and duties of elected officers in the district bylaws.

(f)  Officers serve until the election of new officers.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.110.  Meetings.

The board shall hold regular and, if necessary, special and emergency board meetings. The board shall hold board meetings at a time and place specified in the district bylaws.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.111.  Quorum.

(a) A quorum of the directors is required to be present at a board meeting for the board to conduct district business.

(b)  The board shall specify in the district bylaws the number of directors that constitute a quorum.  A quorum may not be less than a majority of the directors serving on the board.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.112.  Voting Requirements.

(a) The board shall specify in the district bylaws the number of votes necessary to approve a matter considered by the board.  The number of votes specified may not be less than a majority of the directors present at the  meeting at which the matter is being considered.

(b)  A director, including the president, may vote on any matter considered by the board, including a matter authorizing a financial commitment to a capital project.  This subsection applies even if the director was appointed by a member entity that is not participating in the project being considered by the board.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.113.  Conflict Of Interest.

District directors and officers are subject to Chapter 572, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.114.  District Employees.

The board may appoint and employ any person that the board determines is necessary to conduct the affairs of the district, including a general manager, engineer, attorney, financial advisor, accountant, or other consultant.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.115.  Bylaws.

The board shall adopt bylaws to govern matters of the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.116.  Customer Advisory Councils.

(a) For each operating unit, the board may establish a customer advisory council that consists of one representative of each wholesale customer or retail unit of the district.

(b)  For each retail unit, the board may establish a customer advisory council that consists of five members appointed by the retail customers of the unit in accordance with the laws applicable to and rules of the district.  An advisory council member must reside in the service area of the retail unit.

(c)  A representative serving on a customer advisory council:

(1)  has the powers and duties provided in the bylaws and rules of the district; and

(2)  may not vote on any matter considered by the board.

(d)  The board may abolish a customer advisory council.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1201, Sec. 3, eff. June 19, 2009.



Subchapter D. Powers And Duties

Section 7208.151.  General Powers And Duties Of District.

Except as provided by Sections 7208.167 and 7208.206, the district has all the rights, powers, privileges, functions, and duties:

(1)  provided by general law, including Chapters 49, 54, and 65, Water Code; and

(2)  conferred by Section 59, Article XVI, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.152.  Rules.

The board may adopt and enforce reasonable rules to exercise the powers and perform the duties of the district as provided by this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.153.  Rules Relating To Water Quality.

(a) The district may adopt and enforce rules relating to protection of the quality of water flowing to or from the areas in or surrounding a lake, reservoir, or other source of water supply owned, operated, or controlled by the district.

(b)  A rule adopted by the district under this section must:

(1)  relate to:

(A)  preventing waste or unauthorized use of water controlled by the district; or

(B)  regulating privileges on land, a reservoir, or an easement owned or controlled by the district; and

(2)  be consistent with rules of the state.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.154.  General Waste And Water Powers.

The district may:

(1)  provide for:

(A)  the collection, construction, improvement, maintenance, and operation of wholesale or retail wastewater and water systems and treatment works necessary to provide wholesale or retail service to customers; and

(B)  the acquisition, construction, improvement, and maintenance of a water supply or reservoir, or an interest in a water supply or reservoir, necessary to exercise and fulfill the powers and duties of the district;

(2)  supply water for municipal, domestic, and industrial or other beneficial uses or controls;

(3)  collect, treat, process, dispose of, and control all domestic or industrial wastes, whether in fluid, solid, or composite state;

(4)  gather, conduct, divert, control, and treat local storm water or local harmful excesses of water in the district; and

(5)  irrigate and alter land elevations in the district as needed.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1201, Sec. 4, eff. June 19, 2009.



Section 7208.155.  Permits.

The district may acquire a water appropriation or other necessary permit from the state or a permit owner.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.156.  General Contracting Authority.

(a) If necessary to exercise the powers and accomplish the purposes of the district, the district may contract with the United States, a municipality, a county, a water supply corporation, an entity created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, or another public or private entity.

(b)  The district may contract for the acquisition, rental, lease, or operation of wastewater or water facilities owned or operated by the party contracting with the district.

(c)  A contract that requires payment of money by the district may be satisfied from any general or specific source of district money as determined by the board.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.157.  Contracts With District For Water, Wastewater, And Other Utility Services.

(a) Except as provided by Subsection (b), this chapter does not require a customer or prospective customer of the district to secure water, wastewater, or other utility service from the district unless the customer or prospective customer contracts with the district for that purpose.

(b)  A customer or prospective customer is required to secure water, wastewater, or other utility service from the district if:

(1)  the customer or prospective customer is not receiving the service from another source; and

(2)  the district provides the service or determines that the district will make the service available to the customer or prospective customer.

(c)  If a customer contracts with the district to secure water, wastewater, or other utility service from the district, a user of the service under the contract must connect to the district's service system if:

(1)  the user is located inside the boundaries of the customer; and

(2)  the district's system is available for connection at or near the property line of the user.

(d)  A contract under this section may authorize the district to:

(1)  require the customer to terminate service provided to a user who fails or refuses to pay for that service after providing notice as required by law;

(2)  terminate service provided to a customer or user who fails or refuses to pay for that service after providing notice as required by law; and

(3)  terminate other utility services provided to a customer or user if the customer or user fails or refuses to pay for any service provided by the district after providing notice as required by law.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1201, Sec. 5, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch. 1201, Sec. 6, eff. June 19, 2009.



Section 7208.158.  Authority Of Other Entities To Contract With District.

(a) A municipality, county, public agency, or political subdivision of the state, an entity created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, or a water supply corporation may contract with the district if the entity is conducting business wholly or partly inside the district.

(b)  The governing body of an entity that contracts with the district under this section may pledge to the payment of the contract any source of revenue available to the governing body, including revenue from ad valorem taxes.

(c)  If an entity under this section pledges to the payment of a contract money from the entity's water system, wastewater system, or combined water and wastewater system, the payments are an operating expense of that system.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.159.  Joint Agreements.

To accomplish the objectives and exercise the powers of the district, the district may enter into a joint agreement or contract with a water supply corporation, a municipality, an entity created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, a county, a political subdivision of the state, the state, or another private or public entity.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.160.  Wastewater And Other Necessary Utilities And Services.

(a) The district may provide wastewater collection, treatment, or service in the district.

(b)  The district may own, operate, and provide other necessary utilities and services in the district, including raw water, potable water, water distribution and treatment, solid waste collection and disposal, fire, police, and ambulance services, if:

(1)  the right to own, operate, or provide the utility or service has not been conveyed to another entity; or

(2)  the entity to which the right has been conveyed agrees to sell, cede, or otherwise convey to the district the right to own, operate, or provide the utility or service.

(c)  Subsection (b) does not require the district to own, operate, or provide other necessary utilities or services in the district unless the district is required to own, operate, or provide the utility or service under a permit, certificate, or license issued by the state.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.161.  Construction Or Acquisition Of Works And Facilities.

The district may plan, lay out, construct, acquire, own, operate, maintain, repair, improve, or contract for, inside or outside the district, any works, improvements, facilities, plants, equipment, and appliances, including any administrative property 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, treatment plants, or other similar facilities and improvements, whether for municipal, industrial, agricultural, flood control, or related purposes, that are necessary, helpful, or incidental to the exercise of any right, power, privilege, or function provided by this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.162.  Waste Disposal Systems.

(a) The district may establish, acquire, operate, or maintain a regional solid waste disposal system or a nonhazardous liquid waste disposal system.

(b)  If the district establishes a disposal system under  this section, the district shall provide  services from the system to:

(1)  users as determined by the board if the services are provided inside the district's service area; and

(2)  customers if the services are provided outside the district's service area.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.163.  Services Provided Outside Service Area. T

he district may  provide services outside the district's service area as provided by state law.  

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.164.  Right Of Eminent Domain.

(a) The district may acquire by eminent domain land, an easement, a right-of-way, or other property or improvement inside or outside the district if necessary or appropriate in exercising the powers and performing the functions of the district.

(b)  The district may exercise the power of eminent domain as provided by state law, including Chapter 21, Property Code, except that the district is not required to comply with Section 21.021(a), Property Code, during the pendency of the subject litigation.

(c)  In a condemnation proceeding brought by the district, the district is not required to:

(1)  pay in advance or give bond or other security for costs;

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

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

(d)  The district may not exercise the power of eminent domain to acquire:

(1)  property located in the existing corporate limits of a municipality that is located wholly or partly inside the district unless the governing body of the municipality in which the  property is located consents by resolution to the acquisition of the property;

(2)  property located outside the district to be used as a water supply reservoir unless the county in which the reservoir is to be located consents;

(3)  property owned by a county, a municipality, an entity created by special act of the legislature under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, a political subdivision of the state, or an agency or instrumentality of a county or municipality; or

(4)  a waterworks system or a wastewater system owned by a municipality, an entity created by special act of the legislature under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, a political subdivision of the state, a private party, or a nonprofit corporation.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.165.  Costs Of Relocating Or Altering Property.

If the district exercises the power of eminent domain and requires relocating, raising, lowering, rerouting, changing the grade of, or altering the construction of any railroad, highway, pipeline, or electric transmission and electric distribution, telegraph, or telephone lines, conduits, poles, or facilities, the district shall pay the cost of relocating, raising, lowering, rerouting, changing the grade, or altering the construction that equals the comparable replacement cost without enhancement of facilities minus the net salvage value derived from the old facility.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.166.  Regulatory Power Of Municipalities.

The district and the land in the district are subject to any ordinance, code, resolution, or rule, including any platting or zoning requirement, of a municipality that has jurisdiction over territory in the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.167.  State Supervision.

(a) The rights, powers, privileges, functions, and duties of the district are subject to the continuing right of supervision by this state exercised by the Texas Commission on Environmental Quality.

(b)  Except as otherwise provided by this chapter or other law, the district may exercise the rights, powers, privileges, functions, and duties conferred by this chapter without obtaining approval from the Texas Commission on Environmental Quality.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.168.  Rights And Duties Assumed On Creation Of District.

The district may succeed to and assume the rights, privileges, and duties, including contractual obligations, of the Walnut Creek Special Utility District and the City of Springtown relating to the creation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Subchapter E. General Financial Provisions

Section 7208.201.  Audits.

All funds and accounts of the district shall be audited annually by an independent auditor.  The district shall maintain a copy of the audit in the district's official records.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 1201, Sec. 7, eff. June 19, 2009.



Section 7208.202.  Depository.

The board, by order or resolution, shall designate one or more banks inside or outside the district to serve as depository for district money.  Except as provided by this chapter, district money shall be deposited in a depository bank designated under this section.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.203.  Investment Of District Money.

The board may invest district money:

(1)  in the same manner as provided for the investment of county money; and

(2)  as provided by Chapter 2256, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.204.  Rates, Fees, Charges, And Rentals.

(a) District rates, fees, and charges assessed to provide services and facilities to customers and users of the district may vary according to customer class, project, or service area to reflect different costs of providing service.

(b)  The district may require a customer to obtain a deposit from a user for services or facilities provided by the district.  A deposit under this subsection may bear interest.

(c)  If the district issues bonds payable wholly from revenue, the board shall establish and revise rates of compensation for water sold and wastewater or other services rendered by the district that are sufficient:

(1)  to pay operating and maintenance expenses of district facilities;

(2)  to pay the issued bonds as the bonds mature and the interest that accrues on the bonds;

(3)  to maintain the district's fund reserve; and

(4)  to maintain other funds of the district provided by the resolution that authorized the issuance of the bonds.

(d)  A local government, water supply corporation, or other entity that contracts with the district may:

(1)  establish, charge, and collect fees, rates, charges, rentals, or other amounts for services or facilities provided under the contract; and

(2)  pledge amounts that are sufficient to make the required payments under the contract.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.205.  Administration And Planning Costs Fee.

(a) The district may charge each member entity an annual pro rata fee to pay for administration and planning costs incurred by the district that are unrelated to capital projects financed by the district.

(b)  The fee may not exceed $2 per capita population of the member entity unless the board and at least 75 percent of the member entities of the district that together have at least 75 percent of the population of the district agree to a different fee.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.206.  Imposition Of Ad Valorem Taxes Prohibited.

The district may not impose an ad valorem tax.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.207.  District Property And Projects Exempt From Taxation And Assessment.

The district is not required to pay a tax or assessment on any property or project owned, operated, leased, or controlled by the district.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Subchapter F. Bonds

Section 7208.251.  Authority To Issue Bonds.

The district may issue bonds as provided by Chapters 1201 and 1371, Government Code, to provide money for the district to exercise its powers and carry out its purposes.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.252.  Election Not Required.

The district may issue bonds without holding an election.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.253.  Bonds Exempt From Taxation.

Bonds issued by the district, the transfer of the bonds, and income from those bonds, including profits made on the sale of the bonds, are exempt from taxation in this state.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.254.  Payment And Security.

(a) District bonds may be:

(1)  made payable from all or part of the revenue of the district derived from any lawful source, including revenue derived from a contract with a customer or other user of facilities owned or operated by the district or from the ownership and operation of any waterworks system, wastewater system, sewer system, solid waste disposal system, or nonhazardous liquid waste system, or a combination of those systems; and

(2)  paid from and secured by liens on the pledges of all or part of the revenue, income, or receipts derived from the district's ownership, operation, lease, or sale of the property, buildings, structures, or facilities, including the proceeds or revenue from contracts with any person.

(b)  District bonds may be additionally secured by a mortgage or deed of trust on real property owned or to be acquired by the district and by a chattel mortgage or lien on any personal property appurtenant to that real property.   The board may authorize the execution of a trust indenture, mortgage, deed of trust, or other form of encumbrance.  The district may also pledge to the payment of the bonds all or part of a grant, a donation, or revenue or income received or to be received from the United States or any  public or private source.

(c)  The district may pledge all or part of the district's revenue, income, or receipts from fees, rentals, rates, charges, or contract proceeds or payments to the payment of district bonds, including the payment of principal, interest, and any other amount required or permitted relating to the bonds.  The pledged fees, rentals, rates, charges, proceeds, or payments shall be established and collected in amounts sufficient, together with any other pledged resources, to provide for the payment of expenses relating to the bonds and for operation and maintenance and other expenses relating to those facilities.

(d)  For purposes of Subsections (a) and (c), payments and revenue pledged for the district's benefit under Sections 7208.158(a) and (b) are district revenue.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.255.  Maturity.

District bonds may not have a term that exceeds 40 years from the date of issuance.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.256.  Interest Rate.

District bonds shall bear an interest rate as provided by the resolution that authorized the issuance of the bond.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.257.  Additional Bonds.

District bonds may provide for the subsequent issuance of additional parity bonds or subordinate lien bonds under terms provided in the resolution that authorized the issuance of the bond.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.258.  Use Of Bond Proceeds.

(a) If permitted in the resolution that authorized the issuance of the bond, the proceeds from the sale of the bond may be used:

(1)  to pay the interest on the bond during the period of acquisition or construction of facilities to be provided through the issuance of the bond;

(2)  to pay the operating and maintenance expenses of district facilities;

(3)  to create a reserve fund for the payment of the principal of and interest on the bond; and

(4)  in any other manner that is necessary, appropriate, or convenient to accomplish a district purpose.

(b)  The proceeds from the sale of a bond may be placed on time deposit or invested as provided by the resolution that authorized the issuance of the bond.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.



Section 7208.259.  Negotiable Instruments.

Obligations under this chapter are negotiable instruments for purposes of Chapter 8, Business & Commerce Code.

Added by Acts 2007, 80th Leg., R.S., Ch. 920, Sec. 1.07, eff. April 1, 2009.


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