2005 Texas Special Districts Code CHAPTER 7201. LA JOYA SPECIAL UTILITY DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

SUBTITLE C. SPECIAL UTILITY DISTRICTS

CHAPTER 7201. LA JOYA SPECIAL UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS


	§ 7201.001. DEFINITIONS.  Unless the context otherwise 
requires, in this chapter:
		(1)  "Board" means the board of directors of the 
district.                  
		(2)  "Corporation" means the La Joya Water Supply 
Corporation.              
		(3)  "District" means the La Joya Special Utility 
District.                 

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.002. NATURE OF CORPORATION AND DISTRICT.  (a) The 
corporation is a water supply corporation in Hidalgo and Starr 
Counties created under and essential to accomplish the purposes of 
Section 59, Article XVI, Texas Constitution, and operating in 
accordance with Chapter 67, Water Code.
	(b)  The district is:                                                          
		(1)  a special utility district in Hidalgo and Starr 
Counties created under and essential to accomplish the purposes of 
Section 59, Article XVI, Texas Constitution, and operating in 
accordance with Chapters 49 and 65, Water Code;
		(2)  a retail public utility as defined by Section 
13.002, Water Code;  and 
		(3)  the successor in interest to the corporation.                            
	(c)  On the effective date of the Act enacting this chapter, 
the corporation shall be dissolved and succeeded without 
interruption by the district.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.003. APPLICABILITY OF OTHER LAW.  Except as 
otherwise provided by this chapter, Chapters 49 and 65, Water Code, 
including Sections 49.211(a) and 65.201(a), Water Code, apply to 
the district.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.004. REGULATORY CONFLICTS.  (a) If a municipality 
asserts regulatory authority over any geographic area in the 
district and a municipal regulation applicable to that geographic 
area conflicts with a rule of the district, the regulation of the 
municipality prevails.
	(b)  This section does not apply to:                                           
		(1)  rules or regulations concerning potable water 
quality standards;  or   
		(2)  conflicts relating to service areas or 
certificates issued to the corporation or district by the Texas 
Commission on Environmental Quality.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.005. INITIAL DISTRICT TERRITORY.  (a) The 
boundaries of the corporation and initial boundaries of the 
district are coextensive with the service areas covered by 
Certificates of Convenience and Necessity Nos. 10559 and 20785, as 
recorded on the Texas Commission on Environmental Quality maps 
associated with those certificates.  Those maps are incorporated in 
this section by reference.
	(b)  A mistake made in the preparation, copying, or filing of 
the maps described by Subsection (a) and on file with the Texas 
Commission on Environmental Quality does not affect:
		(1)  the organization, existence, or validity of the 
district;              
		(2)  the right of the district to issue bonds;  or                            
		(3)  the legality or operation of the district.                               
	(c)  District boundaries may be modified in accordance with 
Chapters 13 and 49, Water Code, except that the boundaries must 
include all territory in any area included under a certificate of 
convenience and necessity issued by the Texas Commission on 
Environmental Quality to the district.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     

SUBCHAPTER A1. TEMPORARY PROVISIONS


	§ 7201.021. TRANSFER OF ASSETS;  DISSOLUTION.                               

Text of section effective until September 1, 2008
	(a)  On the effective date of the Act enacting this chapter, 
the corporation shall transfer the assets, debts, and contractual 
rights and obligations of the corporation to the district and 
provide notices and make recordings of the transfer required by the 
Water Code and general law.
	(b)  Not later than the 30th day after the date of the 
transfer under Subsection (a), the board of directors of the 
corporation shall commence dissolution proceedings of the 
corporation.
	(c)  On dissolution of the corporation, Certificates of 
Convenience and Necessity Nos. 10559 and 20785 are considered to be 
held by the district.
	(d)  The board of directors of the corporation shall notify 
the Texas Commission on Environmental Quality of the dissolution of 
the corporation and the creation of the district to replace it to 
effect the transfer of Certificates of Convenience and Necessity 
Nos. 10559 and 20785 to the district.
	(e)  On receipt of notice under Subsection (d), the Texas 
Commission on Environmental Quality shall note in its records that 
Certificates of Convenience and Necessity Nos. 10559 and 20785 are 
held by the district.  The Texas Commission on Environmental 
Quality shall, as a ministerial act, transfer the certificates to 
the district without further application, notice, or hearing.  A 
person, party, or entity does not have any right of protest, 
objection, or administrative review of the transfer prescribed by 
this section.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.022. EXPIRATION OF SUBCHAPTER.                                       

Text of section effective until September 1, 2008
	This subchapter expires September 1, 2008.                                     

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     

SUBCHAPTER B. BOARD OF DIRECTORS


	§ 7201.051. TEMPORARY DIRECTORS.  (a) The directors of 
the corporation who hold office on the effective date of the Act 
enacting this chapter shall serve as the temporary directors of the 
district until successor directors are elected and qualify for 
office.
	(b)  The temporary directors of the district are assigned 
position numbers as follows:
		(1)  Position 1, Jose Luis Trigo;                                             
		(2)  Position 2, Jose Guadalupe Reyna;                                        
		(3)  Position 3, George Barreiro;                                             
		(4)  Position 4, Frolian Ramirez;                                             
		(5)  Position 5, Russell Wicker;                                              
		(6)  Position 6, Benito Salinas;                                              
		(7)  Position 7, Manuel Ricardo Garcia;                                       
		(8)  Position 8, Valente Alaniz, Jr.;  and                                    
		(9)  Position 9, Juan Lino Garza.                                             
	(c)  If there is a vacancy on the temporary board of 
directors of the district, the temporary board shall appoint a 
person to fill the vacancy for the remainder of the term for the 
vacated position until the applicable election under Section 
7201.052.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.052. BOARD OF DIRECTORS.  (a) The district shall 
be governed by a board of not fewer than nine and not more than 11 
directors, elected in accordance with Section 49.103, Water Code, 
notwithstanding Subsection (f)(2) of that section.
	(b)  Except for a temporary director under Section 7201.051, 
a candidate for a position as director:
		(1)  is elected at large to represent the entire 
service area of the district;
		(2)  must reside in the service area of the district;  
and                  
		(3)  must be eligible to hold office under Section 
141.001, Election Code.  
	(c)  It is the policy of the district that the directors 
shall represent and reside in as broad a cross-section of the 
geographic area of the district as possible.
	(d)  The district shall fill a vacancy on the board in 
accordance with Section 49.105, Water Code.
	(e)  Except for the temporary directors listed under Section 
7201.051, directors serve staggered terms of three years.
	(f)  On the uniform election date in May 2006, and on that 
uniform election date every third year after that date, the 
district shall hold an election to elect three directors to serve in 
positions 1, 4, and 7.
	(g)  On the uniform election date in May 2007, and on that 
uniform election date every third year after that date, the 
district shall hold an election to elect three directors to serve in 
positions 2, 3, and 5.
	(h)  On the uniform election date in May 2008, and on that 
uniform election date every third year after that date, the 
district shall hold an election to elect three directors to serve in 
positions 6, 8, and 9.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     

SUBCHAPTER C. POWERS AND DUTIES


	§ 7201.101. GENERAL POWERS AND DUTIES.  Except as 
otherwise provided by this chapter, the district has all of the 
rights, powers, privileges, authority, functions, and duties 
provided by the general law of this state, including Chapters 49 and 
65, Water Code, applicable to districts created under Section 59, 
Article XVI, Texas Constitution.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.102. PROVISION OF SERVICE.  The district shall at 
all times operate and construct necessary improvements within the 
certificated areas established by the commission to provide 
uninterrupted, continuous, and adequate service to existing and 
future customers for water, sewer, and contract services.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.103. INTERLOCAL CONTRACTS.  In accordance with 
Chapter 791, Government Code, the district and the Rio Grande 
Regional Water Authority may enter into a contract under which the 
Rio Grande Regional Water Authority may provide administrative or 
any other contract activities for or with the district.  The 
district may enter into interlocal cooperation contracts with any 
public or private entity, request any necessary regulatory approval 
required, and charge fees and rates adequate to generate revenue 
sufficient to cover all expenses of the district based on 
cost-of-service principles.  For purposes of Chapter 791, 
Government Code, performance under a contract is a governmental 
function or service.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     

SUBCHAPTER D. OPERATING PROVISIONS


	§ 7201.201. AUDIT OF DISTRICT.  (a) Subchapter G, Chapter 
49, Water Code, applies to the district.
	(b)  An individual licensed by the state as a certified 
public accountant with not less than five years of government 
accounting experience shall perform the audit required by Section 
49.191, Water Code.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.202. RECORDS OF DISTRICT.  The district shall 
comply with all rules and regulations pertaining to records 
preservation, retention, and destruction promulgated by the Texas 
State Library and Archives Commission under Chapter 441, Government 
Code, as made applicable to water districts and utilities.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.203. MAINTAINING NECESSARY RECORDS.  The district 
shall maintain necessary records and follow cost-of-service 
principles with respect to provision of retail public water or 
sewer service or any other service authorized by Chapter 49 or 65, 
Water Code, or an interlocal contract entered into in accordance 
with Chapter 791, Government Code.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.204. NEWSLETTER, WEBSITE, AND ANNUAL FINANCIAL 
INFORMATION.  The district shall maintain an Internet website with 
current information concerning agendas, minutes, policies, monthly 
financial information concerning revenues and expenses, and 
quarterly summaries.  The district shall provide information, 
including summary financial information based on the preceding 
year's annual audit, to district customers at an annual meeting.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.205. DISCONNECTION OF SERVICE AND CUSTOMER 
FEES.  (a) The district may not disconnect service of a customer 
for late payment before the 31st day after the date the district 
notifies the customer of the overdue payment.
	(b)  After a disconnection caused by the customer's late 
payment, the district may not charge a customer a fee for restoring 
or reinstalling service that exceeds $25 or twice the amount of the 
late payment owed, whichever is less.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.206. RATES FOR SERVICES.  The district, in 
connection with water or sewer retail public utility services, 
shall establish lifeline, senior citizen, or minimum consumption 
level rates for services.  The rate impact of such services shall be 
allocated on the basis of costs of services to achieve conservation 
principles, while securing necessary reserves for the payment of 
operating expenses, sinking funds, principal, interest, and debt 
coverage factors, and any other objective established by the 
district's annual budget.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.     


	§ 7201.207. SERVICE CONTRACT ALLOCATION OF COST AND 
IMMUNITY FROM CLAIMS.  (a) In connection with intergovernmental, 
interlocal, or wholesale service contracts, including cooperative 
billing for any contract-based service, the district shall allocate 
costs of service ratably for the service, and the district shall 
secure indemnity from the contracting party to the extent allowed 
by law.
	(b)  The district is a governmental unit, as that term is 
defined by Section 101.001(3), Civil Practice and Remedies Code, 
and, to the fullest extent provided by law, enjoys immunity from 
suit and liability, consistent with general law, the Texas Tort 
Claims Act, Chapter 101, Civil Practice and Remedies Code, and 
Chapter 49, Water Code, including Section 49. 066 of that code.

Added by Acts 2005, 79th Leg., ch. 1057, § 2.01, eff. Sept. 1, 
2005.