CHAPTER 59. REGIONAL DISTRICTS

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WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

CHAPTER 59. REGIONAL DISTRICTS

SUBCHAPTER A. DISTRICT CREATION

Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of this

chapter is to authorize creation and operation of regional

districts for water, sanitary sewer, drainage, and municipal

solid waste disposal under Section 59, Article XVI, Texas

Constitution.

(b) This chapter applies only in counties with a population of

at least 3.3 million or bordering a county with a population of

at least 3.3 million.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 149, eff.

Sept. 1, 2001.

Sec. 59.002. DEFINITIONS. (a) In this chapter:

(1) "District" means a district created or operating under this

chapter.

(2) "Municipal district" means a district created under general

law or a special Act operating under Chapter 51, 53, or 54.

(3) "Bond" means bonds, coupons, notes, or any other evidence of

indebtedness.

(b) Other terms not defined by this chapter have the same

meaning assigned to those terms by Section 49.001.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.003. CREATION OF DISTRICT. (a) A district may be

created by:

(1) The boards of at least 20 percent of the total number of

municipal districts to be included in the proposed district may

jointly petition the commission for creation of a district. The

petition must describe the territory to be included in the

district and must include resolutions endorsing creation of the

district adopted by each municipal district to be included in the

district.

(2) The owner or owners of 2,000 or more contiguous acres may

petition the commission for creation of a district.

(3) The commissioners courts of one or more counties may

petition the commission for creation of a district in any

territory within the county.

(4) The governing body of any city may petition the commission

for creation of a district in any territory within the city or

its extraterritorial jurisdiction.

(b) Petitions for the creation of a district must:

(1) describe the boundaries of the proposed district by metes

and bounds that adequately and completely circumscribe the

property so that there is complete closure of the property or by

lot and block numbers if there is a recorded map or plat or

subdivision survey of the area;

(2) state the general nature of the work proposed to be done,

the necessity of the work, and the cost of any projects of the

district as estimated by those filing the petition;

(3) state the name of each petitioner; and

(4) include a name of the district generally descriptive of the

locale of the district followed by the words "Regional District."

district in the state.

(d) Section 54.013 applies to the composition of districts

created under this chapter.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.004. PURPOSES OF DISTRICT. A district shall be created:

(1) to purchase, own, hold, lease, and otherwise acquire sources

of water supply;

(2) to build, operate, and maintain facilities for the

transportation of water;

(3) to sell water to cities, to political subdivisions of this

state, to water supply corporations, to private business

entities, and to individuals;

(4) to purchase, own, hold, lease, and otherwise acquire

equipment and mechanisms necessary for sanitary sewer and

wastewater treatment;

(5) to build, operate, and maintain facilities for sanitary

sewer and wastewater treatment;

(6) to transport and treat sanitary sewer and wastewater

effluent of cities and political subdivisions of this state and

for private business entities or individuals;

(7) to purchase, own, hold, lease, and otherwise acquire

equipment and mechanisms for the drainage of storm water and

floodwater; and

(8) for the purposes outlined in Section 54.012.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water

Development Board requires that matching funds be provided as a

condition for receiving a loan or grant from the Texas Water

Development Board from research and planning funds, the matching

funds may not be provided through a guarantee of matching funds

by any individual who has a financial interest in the regional

district or who will receive any direct financial benefit from a

regional district project.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.006. CONSENT OF CITY. (a) Land in the corporate limits

of a city or in the extraterritorial jurisdiction of a city may

not be included in a district unless the city grants its written

consent by resolution or ordinance to the inclusion of the land

in the district.

(b) If the governing body of a city fails or refuses to grant

permission for the inclusion of land in its extraterritorial

jurisdiction in a district within 120 days after receipt of a

written request, the person or entity desiring to create the

district may petition the governing body of the city to make

available the water, sewer, or drainage service contemplated to

be provided by the district.

district to execute a mutually agreeable contract providing for

the service requested within six months after receipt of a

request for consent constitutes authorization for the inclusion

of land in the district under this section. Authorization for the

inclusion of the land in the district under this section means

only authorization to initiate proceedings to include the land in

the district as otherwise provided by this chapter.

(d) Sections 54.016(e), (f), (g), and (h) apply under this

chapter.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.007. GRANTING OR REFUSING PETITION; EXCLUSION OF

TERRITORY. (a) If the commission finds after considering the

petition that the petition conforms to the requirements of this

chapter and that the creation of the district would be of benefit

to the territory to be included in the district, the commission

shall issue an order granting the petition for creation. If the

commission finds that part of the territory included in the

proposed district will not benefit from the creation of the

district, the commission shall exclude that territory from the

proposed district and redefine the proposed district's boundaries

accordingly.

(b) If the commission finds that the petition does not conform

to the requirements of this chapter or that the proposed projects

are not of benefit to the territory in the proposed district, the

commission shall issue an order either denying the petition or

requiring petitioners to amend their petition.

petition shall be mailed to each city having extraterritorial

jurisdiction in the county or counties in which the district is

to be located that has requested notice of hearings as provided

by Section 54.019.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995. Amended by Acts 1997, 75th Leg., ch. 1070, Sec. 39, eff.

Sept. 1, 1997.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Sec. 59.021. DIRECTORS. (a) The commission shall appoint

temporary directors who shall serve until permanent directors are

elected.

(b) A petition requesting creation filed in accordance with

Section 59.006 may provide that directors be elected by precinct

as provided by Subsection (h).

the petition requesting creation of the district requests and the

commission approves a board that consists of seven members.

(d) Permanent directors shall be elected in accordance with

Chapter 49.

(e) If the petition for creation has requested the election of

seven directors as provided by Subsection (c), unless otherwise

agreed, the three directors elected who received the fewest

number of votes, whether their election is by precinct or at

large, shall serve until the next directors election following

the confirmation election and the four who received the highest

number of votes shall serve until the second directors election

after the confirmation election.

(f) After the creation of the district, the persons or entities

that petitioned for creation or 50 qualified voters of the

district may file a petition with the commission requesting to

expand the district's board to seven members. If the commission

grants the petition, the commission shall appoint two temporary

directors. One temporary director shall serve until the next

directors election and one shall serve until the next succeeding

directors election. At each election one director shall be

elected to serve for a four-year term.

(g) If the board of directors of the district is expanded to

seven members, four directors shall constitute a quorum and a

concurrence of four directors is necessary in all matters

pertaining to the business of the district.

(h) A petition for the creation of a district may request that

the board be elected to represent a geographic area. If the

petition requesting creation of the district is granted, the

commission shall establish precincts from which the directors are

to be elected. In establishing the precincts the commission shall

attempt to have directors represent geographic areas with equal

numbers of people and shall comply with the federal Voting Rights

Act of 1965 (42 U.S.C. Sections 1971, 1973 et seq.). Thereafter,

the board of directors of the district shall revise the precincts

from time to time to cause them to comply with the provisions of

this subsection.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.022. ABILITY TO SET RATES. The district may charge

rates to persons and entities located outside the district's

boundaries on terms, rates, and charges the board of directors

may determine to be advisable. In setting rates for

out-of-district customers, the board shall set rates sufficient

to enable it to meet operation and maintenance expenses and to

pay the principal of and interest on debt issued in connection

with providing service and to provide a reasonable reserve for

replacements to the district. In setting rates, the district may

take into consideration past operation and debt service expenses.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.023. ISSUANCE OF BONDS. The district may issue bonds

for the purpose of purchasing, constructing, acquiring, owning,

operating, repairing, improving, or extending any district works,

improvements, facilities, plants, equipment, and appliances

needed to accomplish the purposes of the district, including

works, improvements, facilities, plants, equipment, and

appliances needed to provide a waterworks system, sanitary sewer

system, storm sewer system, solid waste disposal system, and

parks and recreational facilities. Prior to issuing bonds or

other obligations, a confirmation election must be held in

accordance with Chapter 49, and a majority of voters must approve

the establishment of the district.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS. (a) A

municipal district may be excluded from the district as provided

by this section.

(b) To be excluded, the board of directors of the municipal

district may adopt a resolution requesting exclusion by a

majority vote of its board of directors and shall file the

petition with the directors of the proposed district before the

first confirmation election.

separate voting precinct shall be used for the qualified voters

in each municipal district that has filed a petition requesting

exclusion. The votes in each precinct shall be tallied separately

to determine whether that municipal district will be excluded

from the district boundaries.

(d) If a majority of the votes cast in a municipal district

requesting exclusion vote against confirmation of the district,

the votes cast in the confirmation election shall not be counted

for the confirmation election, bond election, or maintenance tax

election, and that municipal district must be excluded from the

boundaries of the district by the board of directors of the

district at the time the results of the election are canvassed.

(e) After a confirmation election at which the district is

authorized to be created, the board of directors of the district

shall adopt an order redefining the boundaries of the district to

exclude those municipal districts petitioning for exclusion that

have voted not to confirm creation of the district.

(f) Before the creation hearing, any municipal district located

within the proposed district may petition the commission for a

separate voting precinct to be used within the boundaries of the

petitioning district at the time of the district's confirmation

election. If the commission grants the petition requesting a

separate voting precinct, Subsections (c) through (e) apply.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district may

be created pursuant to a petition granted by the commission, a

confirmation election must be held within the boundaries of the

proposed district.

(b) The directors appointed by the commission shall call and

hold the confirmation election in the manner provided for

conducting elections under Chapter 49. The provisions of those

sections relating to a directors election do not apply to an

election held under this section.

confirmation elections may not be held to confirm the creation of

the district.

(d) A bond election, maintenance tax election, and any other

election may be held at the same time and in conjunction with a

confirmation election.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION

Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL

LANDOWNERS. In addition to the method of adding land to a

district described in Section 59.052, defined areas of land,

regardless of whether they are contiguous to the district, may be

annexed to the district in the manner provided in Chapter 49.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.052. FILING OF PETITION. A petition requesting the

annexation of a defined area that is signed by a majority in

value of the owners of land in the defined area, as shown by the

tax rolls of the county or counties in which that area is

located, that is signed by 50 landowners if the number of

landowners is more than 50, that is signed by the single

landowner of 2,000 or more acres of land in the area, or that is

signed by a majority of the governing body of a municipal

district, a county, or a city requesting annexation shall be

filed with the secretary of the board.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF BONDS.

(a) If the board considers it advisable before the issuance of

any bonds, the board may dissolve the district and liquidate the

affairs of the district as provided by Sections 54.734 through

54.738.

(b) If a majority of the board finds at any time before the

authorization of bonds that the proposed district and its

proposed activities are for any reason impracticable or

apparently cannot be successfully and beneficially accomplished,

the board may issue notice of a hearing on a proposal to dissolve

the district.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's

order to dissolve the district may be judicially reviewed as

provided in Chapter 49.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

SUBCHAPTER D. MISCELLANEOUS

Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) If a

city annexes all or any part of the territory within a district,

or incorporates all or any part of any territory within a

district, the city shall succeed to the powers, duties, assets,

and obligations of the district as provided by this chapter.

(b) On annexation of any part of the territory of a district by

a city or incorporation by a city of any part of the territory of

a district, the city shall assume a pro rata share of all debt of

the district payable in whole or in part by ad valorem taxes

incurred for water, sewer, or drainage purposes or any

combination of the three purposes. The percentage of the

assumption shall be determined by multiplying the total debt of

the district payable in whole or in part from taxes incurred for

the stated purposes by a fraction, the numerator of which is the

assessed value of the property to be annexed or incorporated

based on the most recent certified county property tax rolls at

the time of annexation or incorporation and the denominator of

which is the total assessed value of the property of the district

based on the most recent certified county property tax rolls at

the time of annexation or incorporation.

a district or incorporation over any part of the territory of a

district, the district may not levy taxes on that territory, and

the territory is no longer considered a part of the district for

any purpose.

(d) If any district's debt payable in whole or in part from ad

valorem taxes is assumed by a city, the governing body of the

city shall levy and cause to be collected taxes on all taxable

property within the city or provide other funds sufficient to pay

the city's pro rata share of the principal of and interest on

that debt as it becomes due and payable.

(e) If a city annexes or incorporates the entire territory of

the district, the district shall be dissolved in accordance with

Sections 43.074, 43.075, and 43.081, Local Government Code, if

the district is located in one city or Sections 43.076 through

43.079, Local Government Code, if the district is located in more

than one city.

(f) Section 43.071, Local Government Code, does not apply to the

annexation of a district created pursuant to this chapter.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

Sec. 59.072. OTHER LAWS. (a) This chapter prevails over any

other law in conflict with or inconsistent with this chapter.

(b) Except as specifically provided by this chapter, Chapter 49

and Sections 54.018, 54.019(a), (b), (c), and (d), 54.020,

54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208, 54.502

through 54.505, 54.507(b) and (c), 54.510 through 54.512, 54.514,

54.515, 54.518, 54.520, 54.521, 54.601 through 54.604, and 54.735

through 54.737 apply under this chapter.

this chapter.

Added by Acts 1995, 74th Leg., ch. 715, Sec. 3, eff. Sept. 1,

1995.

State Codes and Statutes

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