SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE I. WATER CONTROL AND IMPROVEMENT DISTRICTS

CHAPTER 9016.  MIDLAND COUNTY UTILITY DISTRICT

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 9016.001.  DEFINITIONS.  In this chapter:
(1)  "Board" means the district's board of directors.
(2)  "Commission" means the Texas Commission on Environmental Quality.
(3)  "County" means Midland County.
(4)  "Director" means a board member.
(5)  "District" means the Midland County Utility District.
(6)  "Municipality" means a municipality in whose corporate limits or extraterritorial jurisdiction any part of the district is located.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.002.  NATURE OF DISTRICT.  The district is a water control and improvement district created under Section 59, Article XVI, Texas Constitution.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.003.  CONFIRMATION AND DIRECTORS' ELECTION REQUIRED.  The temporary directors shall hold an election to confirm the creation of the district and to elect five permanent directors as provided by Section 49.102, Water Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.004.  CONSENT OF MUNICIPALITY REQUIRED.  The temporary directors may not hold an election under Section 9016.003 until each municipality has consented by ordinance or resolution to the creation of the district and to the inclusion of land in the district.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.005.  FINDINGS OF PUBLIC PURPOSE  AND BENEFIT.  (a)  The district is created to serve a public purpose and benefit.
(b)  The district is created to accomplish the purposes of a water control and improvement district as provided by general law and Section 59, Article XVI, Texas Constitution.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.006.  INITIAL DISTRICT TERRITORY.  (a)  The district is initially composed of the territory described by Section 2 of the Act enacting this chapter.
(b)  The boundaries and field notes contained in Section 2 of the Act enacting this chapter form a closure.  A mistake made in the field notes or in copying the field notes in the legislative process does not affect the district's:
(1)  organization, existence, or validity;
(2)  right to issue any type of bond for the purposes for which the district is created or to pay the principal of and interest on a bond;
(3)  right to impose a tax; or
(4)  legality or operation.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

SUBCHAPTER B.  BOARD OF DIRECTORS

Sec. 9016.051.  GOVERNING BODY; TERMS.  (a)  Except as provided by Subsection (c), the district is governed by a board of five elected directors.
(b)  Except as provided by Section 9016.052, directors serve staggered four-year terms.
(c)  If the municipality annexes any part of the territory of the district, the municipality shall appoint one ex officio member to the board to serve as a sixth director.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.052.  TEMPORARY DIRECTORS.  (a)  The temporary board consists of:
(1)  Shelton Viney;
(2)  Susie Hitchcock-Hall;
(3)  Alan Lang;
(4)  David Orr; and
(5)  Israel Rodriguez.
(b)  Temporary directors serve until the earlier of:
(1)  the date permanent directors are elected under Section 9016.003; or
(2)  September 1, 2015.
(c)  If permanent directors have not been elected under Section 9016.003 and the terms of the temporary directors have expired, successor temporary directors shall be appointed or reappointed as provided by Subsection (d) to serve terms that expire on the earlier of:
(1)  the date permanent directors are elected under Section 9016.003; or
(2)  the fourth anniversary of the date of the appointment or reappointment.
(d)  If Subsection (c) applies, the owner or owners of a majority of the assessed value of the real property in the district may submit a petition to the commission requesting that the commission appoint as successor temporary directors the five persons named in the petition.  The commission shall appoint as successor temporary directors the five persons named in the petition.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.053.  NOTICE OF MEETINGS.  The district shall provide the municipality with written notice before a meeting of the board.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

SUBCHAPTER C.  POWERS AND DUTIES

Sec. 9016.101.  GENERAL POWERS AND DUTIES.  The district has the powers and duties necessary to accomplish the purposes for which the district is created.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.102.  WATER CONTROL AND IMPROVEMENT DISTRICT POWERS AND DUTIES.  The district has the powers and duties provided by the general law of this state, including Chapters 49 and 51, Water Code, applicable to water control and improvement districts created under Section 59, Article XVI, Texas Constitution.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.103.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR RESOLUTION.  The district shall comply with all applicable requirements of any ordinance or resolution that is adopted under Section 42.042, Local Government Code, and Section 9016.004 and that consents to the creation of the district or to the inclusion of land in the district.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.104.  COMPLIANCE WITH MUNICIPAL REGULATIONS.  (a)  Any water, sanitary sewer, drainage, or other infrastructure or public facilities constructed, acquired, improved, maintained, or operated by the district shall comply with any applicable regulations of the municipality in whose corporate limits or extraterritorial jurisdiction the infrastructure or facilities are located.
(b)  Any water system constructed, acquired, improved, maintained, or operated by the district shall:
(1)  comply with any applicable regulations of the municipality regarding specifications for rural density; and
(2)  contain distribution lines that are:
(A)  four inches or more in diameter; and
(B)  sufficient to provide fire hydrant service according to the municipality's specifications for rural density.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.105.  COUNTY RIGHT-OF-WAY.  The district must obtain the approval of the county's governing body of the plans and specifications of any facilities to be installed on property located in a county right-of-way.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.106.  LIABILITY.  (a)  Neither the county nor the municipality is liable for any claims arising from the operation of the district's water system or other actions or inactions of the district, including labor, safety, or signage, or contamination or other environmental issues.
(b)  Any action taken by the municipality is a governmental function.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.107.  COSTS OF LINE RELOCATION.  (a)  The district is solely responsible for the expense associated with the relocation of any district water line required by:
(1)  the county or a municipality; or
(2)  a state or federal highway authority, including the Texas Department of Transportation and the Federal Highway Administration.
(b)  The district will not unreasonably delay any requested line relocation.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.108.  SERVICES TO BE PROVIDED BY THE DISTRICT, COUNTY, OR MUNICIPALITY.  (a)  The district may enter into an interlocal contract with the county or municipality to provide governmental functions, including fire protection, trash collection and disposal, and ambulance service.
(b)  Notwithstanding Subsection (a), the municipality is authorized to provide sewer and drainage service in the district.  The municipality shall establish the amount of the fees to be charged to recipients of sewer and drainage service under this subsection.
(c)  Notwithstanding Subsection (a), the district may not provide any services within the territorial limits of the municipality as those limits exist on September 1, 2011.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.109.  ANNEXATION BY MUNICIPALITY.  (a)  The municipality may annex a part of the territory of the district without annexing the entire territory of the district.
(b)  If the municipality annexes all or part of the district:
(1)  the annexed territory is not removed from the district; and
(2)  the district is not:
(A)  dissolved; or
(B)  prevented from providing district services to the annexed territory.
(c)  If any territory inside the district is annexed, the owner of the property shall pay the same rate of ad valorem tax to the municipality as other residents of the municipality.
(d)  By annexing territory in the district, the municipality does not assume any debt of the district.
(e)  The district may not contest an annexation by the municipality.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.110.  WATER SERVICE DEADLINE.  The district must begin operation of a water system serving at least a part of the district not later than the sixth anniversary of the date that district voters approve the issuance of bonds to provide for the development of the water system.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.111.  LIMITATION ON USE OF EMINENT DOMAIN.  The district may not exercise the power of eminent domain:
(1)  outside the district to acquire a site or easement for a recreational facility as defined by Section 49.462, Water Code;
(2)  in the corporate limits of the municipality as those limits exist on September 1, 2011; or
(3)  outside the county.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.112.  PROHIBITION ON DIVISION OF DISTRICT.  The district may not divide into two or more districts.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS

Sec. 9016.151.  ELECTIONS REGARDING TAXES OR BONDS.  (a)  The district may issue, without an election, bonds and other obligations secured by:
(1)  revenue other than ad valorem taxes;  or
(2)  contract payments described by Section 9016.153.
(b)  The district must hold an election in the manner provided by Chapters 49 and 51, Water Code, to obtain voter approval before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes.
(c)  The district may not issue bonds payable from ad valorem taxes to finance a road project unless the issuance is approved by a vote of a two-thirds majority of the district voters voting at an election held for that purpose.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.152.  OPERATION AND MAINTENANCE TAX.  (a)  If authorized at an election held under Section 9016.151, the district may impose an operation and maintenance tax on taxable property in the district in accordance with Section 49.107, Water Code.
(b)  The board shall determine the tax rate.  The rate may not exceed the rate approved at the election.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.153.  CONTRACT TAXES.  (a)  In accordance with Section 49.108, Water Code, the district may impose a tax other than an operation and maintenance tax and use the revenue derived from the tax to make payments under a contract after the provisions of the contract have been approved by a majority of the district voters voting at an election held for that purpose.
(b)  A contract approved by the district voters may contain a provision stating that the contract may be modified or amended by the board without further voter approval.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

SUBCHAPTER E.  BONDS AND OTHER OBLIGATIONS

Sec. 9016.201.  AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.  The district may issue bonds or other obligations payable wholly or partly from ad valorem taxes, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources, to pay for any authorized district purpose.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.202.  TAXES FOR BONDS.  At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a continuing direct ad valorem tax, without limit as to rate or amount, while all or part of the bonds are outstanding as required and in the manner provided by Section 51.433, Water Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.203.  LIMITATION ON TAX RATE.  Notwithstanding any other provision of this chapter, the projected combined operation, maintenance, and debt service tax rates as of the date of the issuance of any bonds, as described by the commission in a commission order approving the issuance of the bonds, may not exceed 65 cents for each $100 of assessed valuation of property in the district.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.

Sec. 9016.204.  BONDS AND OTHER OBLIGATIONS NOT TO BE PAID BY MUNICIPALITY OR COUNTY.  Bonds or other obligations of the district:
(1)  may not be paid wholly or partly by taxes imposed by the county or the municipality;
(2)  are not debts of the county or municipality; and
(3)  do not give rise to a claim against the county or municipality.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1043 (H.B. 3111), Sec. 1, eff. June 17, 2011.