CHAPTER 1. GENERAL PROVISIONS AND REGULATIONS

State Codes and Statutes

Statutes > Texas > Vernon-s-civil-statutes > Title-22-bonds-county-municipal-etc > Chapter-1-general-provisions-and-regulations

VERNON'S CIVIL STATUTES

TITLE 22. BONDS--COUNTY, MUNICIPAL, ETC.

Art. 717r. METROPOLITAN WATER CONTROL AND IMPROVEMENT DISTRICTS

AND SUBDISTRICTS; ISSUANCE OF BONDS AND REFUNDING BONDS.

Definitions

Sec. 1. In this Act:

(1) "Refunding bonds" means refunding bonds issued by a

metropolitan water control and improvement district.

(2) "Residential neighborhoods" means an area that, as it

develops, will consist of detached single-family residences on no

less than 79 percent of its net residential acreage, and no more

than an additional 10 percent of its net residential acreage will

consist of condominiums or multifamily rental units with a

density greater than 15 units per net residential acre.

Notwithstanding the foregoing, "residential neighborhoods" means

an area that, as it develops, will consist of detached

single-family residences on no less than 87-1/2 percent of its

net residential acreage if the preliminary engineering report

adopted by the board of directors of the metropolitan water

control and improvement district before the authorization of

bonds stipulated that approximately 87-1/2 percent of the net

residential acreage would consist of single-family residences;

provided, however, that on the full utilization of all facilities

constructed with the proceeds of the bonds so authorized, the

definition of "residential neighborhoods" stated in the first

sentence of this subdivision shall thereafter apply. Variance of

as much as three percent from the percentages set forth above

shall be permissible during development so long as the

percentages are met on completion of development.

(3) "Subdistrict" means a conservation and reclamation district

created pursuant to Article XVI, Section 59, of the Texas

Constitution and this Act to provide freshwater supply and

distribution, sanitary sewage collection and treatment and storm

sewer and drainage facilities and services to residential

neighborhoods.

(4) "Metropolitan water control and improvement district" means

each conservation and reclamation district containing at least

10,000 acres after all exclusions of land have occurred, created

pursuant to Article XVI, Section 59, of the Texas Constitution

whether by general law or special Act that is governed by Chapter

51, Water Code, as amended, to the extent those provisions are

not inconsistent with the provisions of any special Act creating

the district.

Refunding Bonds

Sec. 2. (a) A metropolitan water control and improvement district

may issue bonds to refund all or part of its outstanding bonds,

notes, or other obligations including matured but unpaid

interest.

(b) Refunding bonds shall mature serially or otherwise not more

than 40 years from their date and shall bear interest at any rate

or rates permitted by the constitution and laws of this state.

bonds, notes, or other obligations being refunded or from other

additional sources or from other different sources.

(d) The refunding bonds shall be approved by the attorney general

and shall be registered by the comptroller of public accounts.

After that approval and registration, the refunding bonds shall

be valid and incontestable for all purposes.

(e) The orders or resolutions authorizing the issuance of the

refunding bonds may provide that they shall be sold and the

proceeds deposited in the place or places at which the bonds

being refunded are payable, in which case the refunding bonds may

be issued before the cancellation of the bonds being refunded,

provided an amount sufficient to pay the principal of and

interest on the bonds being refunded to their maturity dates, or

to their option dates if the bonds have been duly called for

payment prior to maturity according to their terms, has been

deposited in the place or places at which the bonds being

refunded are payable. The comptroller of public accounts shall

cancellation of the bonds being refunded. All resolutions

previously adopted by metropolitan water control and improvement

districts authorizing the issuance of refunding bonds are

ratified and confirmed in all respects.

(f) A refunding may be accomplished in one or in several

installment deliveries. Refunding bonds constitute negotiable

instruments and are investment securities governed by the Uniform

Commercial Code (Chapter 8, Business & Commerce Code)

notwithstanding any provisions of law or court decision to the

contrary and are legal and authorized investments for banks,

savings banks, trust companies, savings and loan associations,

insurance companies, fiduciaries, trustees, and guardians, and

for the sinking funds of cities, counties, school districts, and

other political subdivisions or public agencies of this state.

Refunding bonds are eligible to secure deposits of any public

funds of the state and of any city, county, school district, and

any other political subdivision or public agency of the state and

are lawful and sufficient security for the deposits to the extent

of their market value.

(g) In lieu of the methods set forth in this Act, a metropolitan

water control and improvement district may refund bonds, notes,

or other obligations in the manner provided by other general laws

of this state.

(h) Notice of intention to issue refunding bonds shall be

published by the metropolitan water control and improvement

district at least once a week for two consecutive weeks in a

newspaper of general circulation within the metropolitan water

control and improvement district at least 15 days before the

meeting of the governing body at which it is proposed to issue

such bonds. At any time prior to the issuance of the bonds, if a

petition signed by not less than 10 percent of the qualified

voters of the metropolitan water control and improvement district

is filed with the metropolitan water control and improvement

district calling for a referendum on the refunding bond issue,

the governing body shall, at its next meeting, order an election

to be held within the metropolitan water control and improvement

district to determine whether or not the bonds shall be issued.

The election shall be held in the manner prescribed by Chapter

1251, Government Code, for the issuance of municipal bonds.

Creation of Subdistricts

Sec. 3. (a) The Texas Water Commission may create subdistricts

over designated territory within the boundaries of metropolitan

water control and improvement districts as provided by this

section.

(b) A petition that contains the substance of the requirements of

Sections 51.013 and 51.014, Water Code, shall be filed with the

Texas Water Commission.

given in the manner required by Section 51.018, Water Code.

(d) The hearing shall be conducted in the manner provided by

Section 51.020, Water Code, and the Texas Water Commission shall

grant or refuse the petition in the manner provided by Section

51.021, Water Code, and the appeal from the decision of the Texas

Water Commission shall be made in the manner provided by Sections

51.022 through 51.025, Water Code, as amended. The Texas Water

Commission shall appoint five directors to serve as the governing

body of the subdistrict, each of whom shall meet the

qualifications provided by Section 51.072, Water Code.

(e) Within 60 days after a petition for the creation of a

subdistrict is granted by the Texas Water Commission, the board

of directors of the subdistrict shall adopt an order calling

elections within the boundaries of the subdistrict in the manner

provided by Sections 51.221 through 51.224, Water Code, for the

following purposes:

(1) to confirm the creation of the subdistrict in the manner

provided by Sections 51.033 and 51.034, Water Code;

(2) to authorize the issuance of bonds by the subdistrict or by

the metropolitan water control and improvement district on behalf

of the subdistrict to be repaid by ad valorem taxes, revenues, or

ad valorem taxes and revenues derived by the subdistrict;

(3) to authorize a tax within the boundaries of the subdistrict

to make payments under a contract with the metropolitan water

control and improvement district to support refunding bonds of

the metropolitan water control and improvement district in

accordance with the exclusions procedure provided by Section 5 of

this Act;

(4) to authorize a maintenance tax within the boundaries of the

subdistrict in the manner provided by Sections 51.360 and 51.361,

Water Code; and

(5) to elect a permanent board of directors for the subdistrict

in the manner provided by Sections 51.074 and 51.075, Water Code.

(f) The subdistrict shall sue and be sued in its own name and

shall, until excluded from the boundaries of the metropolitan

water control and improvement district in accordance with the

provisions of Section 5 of this Act, have concurrent jurisdiction

with the metropolitan water control and improvement district that

is in the territory within the boundaries of the subdistrict and

may exercise any of the rights, powers, and authority of the

metropolitan water control and improvement district within the

boundaries of the subdistrict.

(g) The ad valorem plan of taxation shall apply to each

subdistrict, and there shall be no hearing for exclusions of land

from the subdistrict necessary prior to the elections provided in

this section.

(h) The subdistrict may be dissolved in the same manner as the

metropolitan water control and improvement district.

(i) The subdistrict shall be governed by Chapter 51, Water Code,

as amended, and all other general laws of this state to the

extent those laws are not inconsistent with this Act.

Bonds of the Subdistrict

Sec. 4. (a) Before adopting the order calling elections provided

by Subsection (e) of Section 3 of this Act, the engineers for the

subdistrict shall present a report to the governing body of the

subdistrict that conforms to Section 51.410, Water Code, with

regard to the bonds to be issued by the subdistrict or by the

metropolitan water control and improvement district on behalf of

the subdistrict.

(b) After the engineer's report is filed and approved, the

governing body of the subdistrict shall order an election within

the boundaries of the subdistrict to authorize the issuance of

bonds by the subdistrict or by the metropolitan water control and

improvement district on behalf of the subdistrict in accordance

with the provisions of this Act and Sections 51.411 and 51.412,

Water Code.

only be repaid from ad valorem taxes imposed on all taxable

property within the boundaries of the subdistrict or income,

increment, and revenue derived from the ownership or operation of

any part of the assets of the subdistrict or any combination of

the foregoing, and the metropolitan water control and improvement

district is not liable for the repayment of those bonds other

than specifically set forth in this subsection.

(d) Bonds issued by a subdistrict or by the metropolitan water

control and improvement district on behalf of the subdistrict

shall be submitted to the attorney general for approval and to

the comptroller of public accounts for registration in the method

specified by Sections 51.416 through 51.418, Water Code, and

shall be subject to the provisions of Sections 51.419 through

51.438, Water Code, as amended. Refunding bonds may be issued by

a subdistrict as provided by Section 2 of this Act.

(e) Bonds issued by a subdistrict or by the metropolitan water

control and improvement district on behalf of the subdistrict are

investment securities under Chapter 726, Acts of the 67th

Legislature, Regular Session, 1981 (Article 2529b-1, Vernon's

Texas Civil Statutes), and are bonds under Chapter 845, Acts of

the 67th Legislature, Regular Session, 1981 (Article 717k-6,

Vernon's Texas Civil Statutes), and are otherwise subject to the

provisions of general laws of this state relating to bonds of a

water control and improvement district to the extent that those

general laws are not inconsistent with this Act.

Exclusion of Territory Within Subdistrict

Sec. 5. (a) Under Subsection (e) of Section 3 of this Act, the

governing body of the subdistrict shall call an election within

the subdistrict to coincide with the confirmation election, at

which election a proposition shall be submitted to the qualified

voters that would authorize the subdistrict to enter into a

contract with the metropolitan water control and improvement

district under which the subdistrict would levy an unlimited ad

valorem tax on all taxable property within the subdistrict to

repay to the metropolitan water control and improvement district

a portion of the metropolitan water control and improvement

district's total outstanding indebtedness, that portion to be

calculated by multiplying the total outstanding indebtedness of

the metropolitan water control and improvement district on the

date of the first payment under the contract by a percentage

equal to the proportion of the total taxable property within the

metropolitan water control and improvement district borne by the

total taxable property within the subdistrict, as of the date of

the next preceding tax roll.

(b) The ballots in the election under Subsection (a) of this

section shall be printed to provide for voting for or against the

following proposition: "The execution of a contract and the levy

of taxes to pay for the contract." A copy of the proposed

contract shall be available at the office of the metropolitan

water control and improvement district for inspection before the

election. The election shall otherwise be conducted in conformity

with Chapter 51, Water Code, as amended, for elections to approve

a tax-supported contract with the United States.

subdistrict, the governing board of the metropolitan water

control and improvement district shall, on receipt of a petition

that conforms substantially to Section 51.694, Water Code, and

that describes all of the territory within the subdistrict,

conduct a hearing within 30 days after receipt of the petition on

the exclusion of the subdistrict from the boundaries of the

metropolitan water control and improvement district.

(d) If the governing body of the subdistrict establishes at the

hearing that the subdistrict has been created, has authorized

issuance of bonds by the subdistrict or by the metropolitan water

control and improvement district on behalf of the subdistrict,

has authorized the tax-supported contract payment, and has

elected a permanent board of directors, the governing board of

the metropolitan water control and improvement district shall, at

the conclusion of the hearing, enter an order approving the

contract supported by a tax within the subdistrict, and excluding

all land within the subdistrict from the boundaries of the

metropolitan water control and improvement district contingent

only on the completion of the refunding bond issue.

(e) Refunding bonds may be issued by a metropolitan water control

and improvement district to implement the exclusion of land

within a subdistrict under any terms and conditions that are

deemed advisable by the governing body of the metropolitan water

control and improvement district and shall only be subject to the

interest rate limitations imposed by the constitution and laws of

this state. In the event refunding bonds are not issued by a

metropolitan water control and improvement district within 30

days after the hearing at which the subdistrict establishes all

items in Subsection (d) of this section, all property within the

subdistrict shall be deemed to be excluded from the boundaries of

the metropolitan water control and improvement district on the

expiration of the 30th day.

(f) Any subdistrict located within a service area as defined by

an Environmental Protection Agency grant utilized by a

metropolitan water control and improvement district to expand its

wastewater treatment plant shall obtain wastewater treatment

services to the extent of capacity provided with Environmental

Protection Agency funds from the wastewater treatment plant

constructed with the prior proceeds of the Environmental

Protection Agency grant in accordance with the terms of a

contract approved by the governing bodies of the subdistrict and

the metropolitan water control and improvement district.

(g) To reduce the cost of services to its residents and

taxpayers, the subdistrict shall utilize the employees,

consultants, staff, and services of the metropolitan water

control and improvement district and shall reimburse the

metropolitan water control and improvement district for all costs

of furnishing those services. The services could be terminated

for good cause. In the event of dispute, the subdistrict and

metropolitan water control and improvement district will obtain

arbitration of the dispute.

Water and Sewer Rates

Sec. 6. The metropolitan water control and improvement district

shall establish rates for all services to subdistricts after

their exclusion from the boundaries of the metropolitan water

control and improvement district that shall not exceed 150

percent of the rates for similar service for residents of the

metropolitan water control and improvement district.

Election Dates

Sec. 7. All of the elections authorized by this Act may be held

on any day of the year other than a general election date and

shall not be limited to the uniform election dates established by

Section 9b, Texas Election Code, as amended (Article 2.01b,

Vernon's Texas Election Code).

Public Purpose

Sec. 8. The legislature finds and determines that this Act will

facilitate and advance the conservation and reclamation of the

natural resources of this state by permitting certain water

control and improvement districts to extend freshwater supply and

distribution facilities, storm water and flood control

facilities, and sanitary sewage collection and treatment

facilities into areas that have previously not received such

facilities. The reclamation of land for development and use as

residential neighborhoods will be implemented and the health,

welfare, and safety of residents of those neighborhoods will be

additionally protected.

Construction

Sec. 9. The powers granted by this Act to metropolitan water

control and improvement districts shall be construed liberally to

effectuate the legislative intent and the purposes of this Act,

and all those powers shall be broadly interpreted to effectuate

that intent and those purposes and not as a limitation of powers.

Severability

Sec. 10. If one or more of the sections, provisions, clauses, or

words of this Act or the application of those sections,

provisions, clauses, or words to any situation or circumstance

shall for any reason be held to be invalid or unconstitutional,

the invalidity or unconstitutionality shall not affect any other

sections, provisions, clauses, or words of this Act or the

application of those sections, provisions, clauses, or words to

any other situation or circumstance, and it is intended that this

Act shall be severable and shall be construed and applied as if

the invalid or unconstitutional section, provision, clause, or

word had not been included in this Act.

Acts 1983, 68th Leg., p. 4370, ch. 702, eff. June 19, 1983; Sec.

2(h) amended by Acts 1999, 76th Leg., ch. 1064, Sec. 45, eff.

Sept. 1, 1999.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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