2009 Texas Code
WATER CODE
TITLE 4. GENERAL LAW DISTRICTS
CHAPTER 51. WATER CONTROL AND IMPROVEMENT DISTRICTS  

WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

CHAPTER 51. WATER CONTROL AND IMPROVEMENT DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 51.001. DEFINITIONS. In this chapter:

(1) "District" means a water control and improvement district.

(2) "Board" means the board of directors of a district.

(3) "Director" means a member of the board of directors of a

district.

(4) "Commissioners court" means the commissioners court of the

county in which a district or part of a district is located.

(5) "Commission" means the Texas Natural Resource Conservation

Commission.

(6) "Executive director" means the executive director of the

Texas Natural Resource Conservation Commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 961, ch. 367, Sec. 1, eff.

June 10, 1981; Acts 1981, 67th Leg., p. 3150, ch. 828, Sec. 1,

eff. June 17, 1981; Acts 1985, 69th Leg., ch. 795, Sec. 1.138,

eff. Sept. 1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec.

1.075, eff. Aug. 12, 1991.

SUBCHAPTER B. CREATION OF DISTRICT; CONVERSION OF DISTRICT

Sec. 51.011. CREATION OF DISTRICT. A water control and

improvement district may be created under and subject to the

authority, conditions, and restrictions of either Article III,

Section 52, of the Texas Constitution, or Article XVI, Section

59, of the Texas Constitution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.012. COMPOSITION OF DISTRICT. (a) A district may

include all or part of one or more counties, including any town,

village, or municipal corporation, and may include any other

political subdivision of the state or any defined district.

(b) The areas composing a district do not have to be contiguous

but may consist of separate bodies of land separated by land not

included in the district; however, each segregated area, before

it may be included in the district, must cast a majority vote in

favor of the creation of the district.

(c) No district may include territory located in more than one

county except by a majority vote of the electors residing within

the territory in each county sought to be included in the

district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.013. PETITION. (a) A petition requesting creation of a

district shall be signed by a majority of the persons who hold

title to land in the proposed district which represents a total

value of more than 50 percent of the value of all the land in the

proposed district as indicated by the tax rolls of the central

appraisal district. If there are more than 50 persons holding

title to land in the proposed district, the petition is

sufficient if signed by 50 of them.

(b) The petition may be signed and filed in two or more copies.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 2001, 77th Leg., ch. 1423, Sec. 25, eff. June 17,

2001.

Sec. 51.014. CONTENTS OF PETITION. The petition shall include:

(1) the name of the district;

(2) the area and boundaries of the district;

(3) the provision of the Texas Constitution under which the

district is to be organized;

(4) the purpose or purposes of the district;

(5) a statement of the general nature of the work to be done and

the necessity and feasibility of the project, with reasonable

detail and definiteness to assist the court or commission passing

on the petition in understanding the purpose, utility,

feasibility, and need; and

(6) a statement of the estimated cost of the project based on

the information available to the person filing the petition at

the time of filing.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.015. PLACE OF FILING; RECORDING. (a) The petition

shall be filed in the office of the county clerk of the county in

which the district is located. If land in more than one county is

included in the district, copies of the petition certified by the

clerk shall be filed in the office of the county clerk of each

county in which a portion of the district is located.

(b) The petition shall be recorded in a book kept for that

purpose in the office of the county clerk.

(c) If more than one petition is filed and the petitions are

identical except for the signature, one copy of the petition

shall be recorded and all signatures on the other petitions shall

be included.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.016. COMMISSIONERS COURT OR COMMISSION TO CONSIDER

CREATION OF DISTRICT. If the land to be included in a district

is within one county, the creation of the district shall be

considered and ordered by the commissioners court, but if the

land to be included in a district is in two or more counties, the

creation of the district shall be considered and ordered by the

commission.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 961, ch. 367, Sec. 1, eff.

June 10, 1981.

Sec. 51.017. SINGLE-COUNTY DISTRICT: HEARING. (a) Except as

provided in Subchapter H of this chapter, if a petition is filed

for the creation of a district within one county, the county

judge shall issue an order setting the date of hearing on the

petition by the commissioners court and shall endorse the order

on the petition or on a paper attached to the petition.

(b) After the order is issued, the county clerk shall issue

notice of the hearing.

(c) The petition may be considered at a regular or special

session of the court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.018. SINGLE-COUNTY DISTRICT: NOTICE OF HEARING. (a)

The notice of hearing on the petition shall include a statement

of the nature and purpose of the district and the date, time, and

place of hearing.

(b) The notice shall be prepared with one original and three

copies. The county clerk shall retain one copy of the notice in

his files and deliver the original and two copies to the county

sheriff.

(c) The sheriff shall post one copy of the notice at the

courthouse door 15 days before the day of the hearing and shall

publish one copy in a newspaper of general circulation in the

county once a week for two consecutive weeks. The first newspaper

publication shall be made at least 20 days before the day of

hearing.

(d) Before the hearing, the sheriff shall make due return of

service of the notice with copy and affidavit of publication

attached to the original.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.019. SINGLE-COUNTY DISTRICT: NAME. (a) A district

located in one county may be named the ____________ County Water

Control and Improvement District, Number ____. (Insert the name

of the county and proper consecutive number.)

(b) A district may be known and designated by any term

descriptive of the location of the district and descriptive of

the principal powers to be exercised by the district; however,

the word "district" shall be included in the designation and a

consecutive number shall be assigned to it if other districts of

the same name have been created in the county.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.020. SINGLE-COUNTY DISTRICT: TESTIMONY AT HEARING. (a)

At the hearing on the petition, any person whose land is included

in or would be affected by the creation of the district may

appear and contest the creation of the district and may offer

testimony to show that the district:

(1) is or is not necessary;

(2) would or would not be a public utility or benefit to land in

the district; and

(3) would or would not be feasible or practicable.

(b) The hearing may be adjourned from day to day.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.021. SINGLE-COUNTY DISTRICT: GRANTING OR REFUSING

PETITION. (a) The commissioners court or the commission shall

grant the petition requesting the creation of a district if it

appears at the hearing that:

(1) organization of the district as requested is feasible and

practicable;

(2) the land to be included and the residents of the proposed

district will be benefited by the creation of the district;

(3) there is a public necessity or need for the district; and

(4) the creation of the district would further the public

welfare.

(b) If the commissioners court or the commission fails to make

the findings required by Subsection (a) of this section, it shall

refuse to grant the petition.

(c) If the commissioners court or the commission finds that any

of the land sought to be included in the proposed district will

not be benefited by inclusion in the district, it may exclude

those lands not to be benefited and shall redefine the boundaries

of the proposed district to include only the land that will

receive benefits from the district.

(d) Repealed by Acts 1989, 71st Leg., ch. 936, Sec. 19, eff.

Sept. 1, 1989.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1989, 71st Leg., ch. 936, Sec. 19, eff. Sept. 1,

1989.

Sec. 51.022. SINGLE-COUNTY DISTRICT: APPEAL FROM ORDER OF

COMMISSIONERS COURT. (a) If the commissioners court grants or

refuses to grant the petition, any person who signed the petition

or any person who appears and protests the petition and offers

testimony against the creation of the district may appeal from

the order of the court by giving notice of appeal in open court

at the time of the entry of the order, which shall be entered on

the court's docket, and by filing with the clerk of the

commissioners court within five days a good and sufficient appeal

bond in the amount of $2500.

(b) The appeal bond shall be approved by the clerk of the

commissioners court payable to the county judge conditioned for

the prosecution of the appeal with effect and the payment of all

costs incurred with the appeal in the event that the final decree

of the court is against the appellant.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.023. SINGLE-COUNTY DISTRICT: RECORD ON APPEAL; NOTICE OF

APPEAL. (a) On completion of an appeal as provided in Section

51.022 of this code, the clerk of the commissioners court shall,

within 10 days, prepare a certified transcript of all orders

entered by the commissioners court and transmit them with all

original documents, processes, and returns on processes to the

clerk of the district court to which the appeal is taken.

(b) All persons shall be charged with notice of the appeal

without notice or service of notice. No person who failed to

appear by petition, in person, or by attorney in the

commissioners court may be permitted to intervene in the district

court trial.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.024. SINGLE-COUNTY DISTRICT: HEARING IN DISTRICT COURT;

PROCEDURE. (a) The district court, either in term time or in

vacation time, shall schedule the appeal for hearing with all

reasonable dispatch.

(b) In the proceeding in the district court, formal pleadings

shall not be required but, with the court's permission, may be

filed.

(c) The trial and decision shall be by the court without the

intervention of a jury, and the hearing shall be conducted as

though the jurisdiction of the district court were original

jurisdiction.

(d) The following matters may be contested in the district

court:

(1) all matters which were or might have been presented in the

commissioners court;

(2) the validity of the act under which the district is proposed

to be created; and

(3) the regularity of all previous proceedings.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 2646, ch. 707, Sec. 4(43),

eff. Aug. 31, 1981.

Sec. 51.025. SINGLE-COUNTY DISTRICT: JUDGMENT OF DISTRICT COURT;

APPEAL. (a) In the appeal, the district court shall apply to

the determination its full powers to the end that substantial

justice may be done.

(b) An appeal from the judgment of the district court may be

taken as in other civil causes, but appeals filed under Section

51.022 of this code shall be given precedence on the docket of

any higher court over all causes which are not of similar public

concern.

(c) The final judgment of the district court, or other court to

which an appeal may be prosecuted, shall be certified and

transmitted to the clerk of the commissioners court with all

original documents and processes which were transmitted from the

commissioners court to the district court on appeal.

(d) The commissioners court shall enter its order on the

petition to conform to the decree entered by the court of final

jurisdiction and shall enter other and further orders as may be

required by law to execute the intent of the certified decree.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.026. SINGLE-COUNTY DISTRICT: APPOINTMENT OF DIRECTORS;

BOND. (a) If the commissioners court grants a petition for

creation of a district, it shall appoint five directors who shall

serve until their successors are elected or appointed in

accordance with law.

(b) Each director shall, within 15 days after appointment, file

his official bond in the office of the county clerk, and the

county clerk shall present the bond to the county judge for

approval. The county judge shall pass on the bond and approve it,

if it is proper and sufficient, or disapprove it and shall

endorse his action on the bond and return it to the county clerk.

(c) If approved, the bond of a director shall be recorded in a

record kept for that purpose in the office of the county clerk,

but if a bond is not approved, a new bond may be furnished within

10 days after disapproval.

(d) If any director appointed under this section fails to

qualify, the commissioners court shall appoint another person to

replace him.

(e) Each director appointed under this section shall take the

oath of office as provided by Section 51.078 of this code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.027. MULTI-COUNTY DISTRICT: HEARING BY COMMISSION. (a)

The commission shall have exclusive jurisdiction and power to

hear and determine all petitions for creation of a district which

will include land or property located in two or more counties.

(b) The orders of the commission concerning the organization of

a district shall be final, unless an appeal is taken from the

orders as provided in this subchapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.028. MULTI-COUNTY DISTRICT: NOTICE OF HEARING. (a)

When a petition is filed, the commission shall give notice of an

application in the manner provided in Section 49.011 and may

conduct a hearing on the application if the commission determines

that a hearing is necessary under that section.

(b) Further, the notice shall be posted at the courthouse door,

on the bulletin board used for posting legal notices, in each

county in which the district may be located.

(c) The notice shall be published in one or more newspapers with

general circulation in the area of the proposed district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1997, 75th Leg., ch. 1070, Sec. 25, eff. Sept. 1,

1997.

Sec. 51.031. MULTI-COUNTY DISTRICT: APPEAL FROM COMMISSION

DECISION. (a) When the commission grants or refuses a petition,

any person who comes within the requirements specified in

Sections 51.020-51.025 of this code may prosecute an appeal from

the judgment of the commission under Sections 51.022-51.025 of

this code.

(b) The appeal may be taken to any district court in any county

in which part of the proposed district is located or to a

district court in Travis County.

(c) The time within which an appeal bond may be approved and

filed is 15 days after the entry of the final order by the

commission.

(d) On the perfection of the appeal, the appellant shall pay the

actual cost of the transcript of the record, which will be

assessed as part of the costs incurred on the appeal.

(e) Whenever practicable, the original documents and processes

with the returns attached shall be sent to the district court.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.032. MULTI-COUNTY DISTRICT: APPOINTMENT OF DIRECTORS BY

COMMISSION; BOND. (a) If the commission grants the petition for

creation of the district, it shall appoint five directors, who

shall serve until their successors are elected or appointed.

(b) A certified copy of the order of the commission granting a

petition and naming the directors shall be filed in the office of

the county clerk of each county in which a portion of the

district is located.

(c) Each director named in the order shall, within 15 days after

appointment, file his official bond in the office of the county

clerk of the county of his residence. The county clerk shall

present the bond to the county judge for approval.

(d) The county judge shall act on each bond in the manner

provided in Section 51.026 of this code.

(e) If any director appointed under this section fails to

qualify, the commissioners court of the county in which he lives

shall appoint some qualified person to replace him.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.035. INCLUSION OF CITY, TOWN, OR MUNICIPAL CORPORATION

IN DISTRICT. (a) No city, town, or municipal corporation may be

included within any district created under this chapter unless

the proposition for the creation of the district has been adopted

by a majority of the electors in the city, town, or municipal

corporation.

(b) Any municipal corporation included within a district shall

be a separate voting district, and the ballots cast within the

municipal corporation shall be counted and canvassed separately

from the remainder of the district.

(c) No district which includes a city, town, or municipal

corporation may include land outside of the municipal corporation

unless the election to confirm and ratify the creation of the

district favors the creation of the district independent of the

vote within the municipal corporation.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.036. CONFIRMATION ELECTION IN DISTRICT INCLUDING LAND IN

MORE THAN ONE COUNTY. No district, the major portion of which is

located in one county, may be organized to include land in

another county unless the election held in the other county to

confirm and ratify the creation of the district is adopted by

those voting in the other county.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.037. EXCLUSION OF PARTS OF DISTRICT; DISSOLUTION. (a)

If any portion of a district governed by Sections 51.035 and

51.036 of this code, votes against the creation of the district

and the remainder of the district votes for the creation, the

district is confirmed and ratified in those portions of the

district voting for the creation, and the district is composed

only of those portions.

(b) The excluded portions of the district shall be excluded from

all debts and obligations incurred after the election; however,

all land and property included in the original district shall be

subject to the payment of taxes for the payment of all debts and

obligations, including organization expenses, incurred while it

was a part of the district.

(c) If a district is created and portions of the proposed

district are excluded by the vote in those portions, 10 percent

of the voters in the district may file with the board a petition

asking for a new election on the issue. A new election shall be

ordered and held for the remaining portion of the district or the

district organization may be dissolved by order of the board and

a new district formed.

(d) A petition requesting a new election shall be filed within

30 days after the day on which the result of the election is

canvassed and declared by the board.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.038. MUNICIPAL DISTRICTS. (a) A district operating

under the provisions of this chapter may, by order of the board

entered in the minutes, become a "municipal district."

(b) To become a municipal district, a district shall have a

taxing power unlimited as to rate and amount and may not have

outstanding or authorized bond obligations exceeding 20 percent

of the established assessable, taxable evaluation of the real

estate subject to the district's taxing power. In computing

outstanding or authorized bond obligations, the bond obligations

which may be retired by the district out of revenues from sources

other than the income from district taxation shall not be

included.

(c) To be eligible to become a municipal district, a district:

(1) shall embrace the total area of a municipal corporation

which has bond obligations which may be declared eligible for

purchase by savings banks and trusts under the acts of the State

of New York, and which has plans designed for furnishing, in

whole or in part, a water supply, sanitation facilities, flood

protection, or other service inuring to the general benefit of

the inhabitants of the embraced city; or

(2) shall have a population, according to the last preceding

federal census, of at least 30,000 persons and have established

assessable real estate values of at least $50 million.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.039. BONDS OF MUNICIPAL DISTRICTS. (a) A district

operating under Section 51.038 of this code may issue bonds which

bear the legend "municipal bond."

(b) Bonds issued in compliance with this section and with

Section 51.038 of this code shall be eligible for investment of

the funds of:

(1) state banks, trust funds, and savings banks;

(2) insurance companies, for the purpose of holding the bonds as

legal reserves against liability under their contracts for

insurance or for investment of an accumulated surplus;

(3) counties, cities, towns, and other political bodies, for the

purpose of investing the accumulated sinking fund money of those

bodies;

(4) the State Board of Education and the regents of The

University of Texas System; and

(5) trustees, receivers, administrators, and guardians

administering funds under orders of a court.

(c) Municipal bonds issued under this section, when in the

lawful possession of any person, shall be lawful reserves, where

reserves are required by law.

(d) The bonds are eligible for deposit with the banking and

insurance departments of Texas in all cases where deposit,

pledge, or security is required by law.

(e) The bonds shall be lawful security for any bank designated

as an official depository for a political body under the laws of

Texas.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.040. CONVERSION OF CERTAIN DISTRICTS INTO DISTRICTS

OPERATING UNDER THIS CHAPTER. (a) Any water improvement

district, levee improvement district, or irrigation district

created under Article III, Section 52, of the Texas Constitution,

or under Article XVI, Section 59, of the Texas Constitution, or

any conservation and reclamation district created under Article

XVI, Section 59, of the Texas Constitution, may be converted to a

district operating under this chapter.

(b) The governing body of a district which desires to convert

into a district operating under this chapter shall adopt and

enter in the minutes of the governing body a resolution declaring

that, in its judgment, conversion into a water control and

improvement district operating under this chapter and under

Article XVI, Section 59, of the Texas Constitution, would serve

the best interest of the district and would be a benefit to the

land and property included in the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.041. CONVERSION OF DISTRICT; NOTICE. (a) Notice of the

adoption of a resolution under Section 51.040 of this code shall

be given by publishing the resolution in a newspaper with general

circulation in the county or counties in which the district is

located.

(b) The notice shall be published once a week for two

consecutive weeks with the first publication not less than 14

full days before the time set for a hearing.

(c) The notice shall:

(1) state the time and place of the hearing;

(2) set out the resolution in full; and

(3) notify all interested persons to appear and offer testimony

for or against the proposal contained in the resolution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.042. CONVERSION OF DISTRICT; FINDINGS. (a) If, on a

hearing, the governing body of the district finds that conversion

of the district into one operating under this chapter would serve

the best interest of the district and would be a benefit to the

land and property included in the district, it shall enter an

order making this finding and the district shall become a

district operating under this chapter.

(b) If the governing body finds that the conversion of the

district would not serve the best interest of the district and

would not be a benefit to the land and property included in the

district, it shall enter an order against conversion of the

district into one operating under this chapter.

(c) The findings of the governing body of a district entered

under this section are final and not subject to appeal or review.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.043. EFFECT OF CONVERSION. A district which converts

into a district operating under this chapter shall:

(1) be constituted a water control and improvement district

operating under and governed by this chapter;

(2) be a conservation and reclamation district under the

provisions of Article XVI, Section 59, of the Texas Constitution;

and

(3) have and may exercise all the powers, authority, functions,

and privileges provided in this chapter in the same manner and to

the same extent as if the district had been created under this

chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.044. RESERVATION OF CERTAIN POWERS FOR CONVERTED

DISTRICTS. (a) Any water improvement district, water control

and preservation district, fresh water supply district, levee

improvement district, drainage district, or navigation district,

after conversion under Section 51.040 of this code, may continue

to exercise all necessary specific powers under any specific

conditions provided by the chapter of this code under which the

district was operating before conversion.

(b) At the time of making the order of conversion, the governing

body shall specify in the order the specific provisions of the

chapter of the code under which the district had been operating

which are to be preserved and made applicable to the operations

of the district after conversion into a district operating under

this chapter.

(c) A reservation of a former power under Subsection (a) of this

section may be made only if this chapter does not make specific

provision concerning a matter necessary to the effectual

operation of the converted district.

(d) In all cases in which this chapter does make specific

provision, this chapter shall, after conversion, control the

operations and procedure of the converted district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.045. CONVERSION OF A DISTRICT OPERATING UNDER THIS

CHAPTER TO A FRESH WATER SUPPLY DISTRICT. (a) Any district

operating under this chapter may be converted into a district

operating as a fresh water supply district under Chapter 53 of

this code in the manner provided in this section.

(b) The governing body of a district desiring to convert under

this section shall adopt a resolution declaring that, in its

judgment, conversion of the district into one operating under

Chapter 53 of this code and under the provisions of Article XVI,

Section 59, of the Texas Constitution, would be in the best

interest of the district and would be a benefit to the land and

property in the district.

(c) The resolution shall provide for a public hearing on the

proposition at a date to be fixed by the governing body not less

than 15 days nor more than 30 days from the date of the

resolution.

(d) Notice of the hearing shall be published once a week for two

consecutive weeks in a newspaper with general circulation in the

area in which the district is located. The first publication

shall be not less than 14 days before the time set for the

hearing. The notice shall contain a copy of the resolution or a

substantial statement of the matters contained in the resolution.

(e) At the hearing, any person may appear and offer testimony

and other evidence.

(f) If, on hearing, the board finds that the conversion of the

district operating under this chapter into one operating under

Chapter 53 of this code would be in the best interest of the

district and would be a benefit to the land and property in the

district, it shall enter an order declaring the district to be

one operating under Chapter 53 of this code, and thereafter, the

district shall operate under the provisions of Chapter 53.

(g) If the board finds that conversion would not be in the best

interest of the district and would not be a benefit to the land

and property in the district, it shall enter its order to that

effect and the district shall continue to operate under this

chapter.

(h) The findings of the governing body shall be final and not

subject to review or appeal.

(i) Nothing in this section may be construed to authorize the

impairment of any existing contract.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.046. ORGANIZATION OF DISTRICT TO CONDUCT PRELIMINARY

SURVEYS. A district may be organized for the sole purpose of

conducting preliminary surveys to determine whether or not

improvements are needed and what improvements, if any, are

required to promote the public welfare.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.047. CREATION OF MASTER DISTRICT. A master district may

be created under this chapter and may include all or any part of

the area of one or more districts created and operating under the

provisions of this chapter or Chapters 53, 55, 56, 57, 60-63 of

this code or Chapter 3, Title 128, Revised Civil Statutes of

Texas, 1925.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.048. PURPOSES OF MASTER DISTRICT. (a) A master

district may be created to conduct preliminary surveys and to

develop a plan for the control and use of the water of any given

stream, so that the improvements on one part of a watershed will

be mechanically and economically related to all other

improvements on the stream or its watershed.

(b) A master district also may be created to enable districts to

pool their resources when necessary to economically:

(1) make preliminary surveys;

(2) adopt a plan to coordinate the plants, improvements, and

facilities of the several constituent districts;

(3) provide the improvements and facilities proposed to be

constructed and furnished by the master district;

(4) provide improvements for the common benefit of the several

districts;

(5) enable the districts jointly to make purchases; or

(6) maintain or operate works for the common benefit of the

several districts.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.049. MASTER DISTRICT; PROCEDURE. (a) The Commission

shall have exclusive jurisdiction to hear and determine petitions

for the creation of a master district.

(b) Each district composing part of a master district shall, for

all purposes of an election, constitute a separate voting unit.

No existing district may be included in a master district unless

the proposal is approved by a majority of the qualified electors

of the constituent district voting in the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.050. MASTER DISTRICT; DIRECTORS. A master district may

have directors which number five, seven, or any other uneven

number up to 21.

(b) The number shall be determined at the time of the creation

of the district and may thereafter be changed by the directors of

the district in a manner to conform to the requirements for

equitable representation for the various areas of the master

district.

(c) The election and qualification of the directors shall, where

applicable, be controlled as provided by the other provisions of

this chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.051. MASTER DISTRICT GOVERNED BY CHAPTER. The

provisions of this chapter, where applicable, shall govern a

master district in:

(1) the procedure for its creation;

(2) the conduct of its affairs; and

(3) its powers.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.052. CITY, TOWN, OR MUNICIPAL CORPORATION CREATED AS A

DISTRICT. (a) Any city, town, or municipal corporation may have

the benefit and powers provided in this chapter under the Texas

Constitution and may aid any district in the construction and

operation of any improvements to the extent that the improvements

may be an advantage to the municipal corporation.

(b) The area included in any city, town, or municipal

corporation may be organized into and constituted a district

operating under this chapter with all the powers, authority, and

privileges provided by Article XVI, Section 59, of the Texas

Constitution. The district shall be governed by this chapter and

by an ordinance duly enacted by the governing body of the city,

town, or municipal corporation.

(c) The ordinance required by Subsection (b) of this section

shall appoint five directors for the district. Each director's

bond shall be filed with and approved by the governing body of

the municipal corporation.

(d) On the qualification of the directors, the district shall be

completely organized without the necessity of an election. The

district shall thereafter be governed by the provisions of this

chapter.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER C. ADMINISTRATIVE PROVISIONS

Sec. 51.071. BOARD OF DIRECTORS. The governing body of a

district is the board of directors, which shall consist of five

directors.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.0711. SPECIAL DIRECTOR. (a) The governing body of a

municipality that enters a contract or agreement with a district

located in more than one county to jointly construct, acquire,

operate, or maintain a regional wastewater system is entitled to

appoint a special director to the board of the district. Section

51.072 does not apply to a special director.

(b) The office of special director exists only during the period

for which the contract or agreement is in effect. If the contract

or agreement is in effect for a term of more than four years, a

special director serves for a four-year term of office. A vacancy

in the office of special director shall be filled by the

governing board of the municipality.

(c) A special director is entitled to vote only on matters

before the district's board of directors that are directly

related to the regional wastewater system that is the subject of

the contract or agreement between the municipality and the

district.

(d) In any matter on which the director appointed under this

section votes, approval by a majority of the six members of the

board is required for approval.

Added by Acts 1989, 71st Leg., ch. 575, Sec. 1, eff. June 14,

1989. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 4, eff.

Sept. 1, 1995.

Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. To be qualified for

election as a director, a person must be a resident of the state,

own land subject to taxation in the district, and be at least 18

years of age. Section 49.052 does not apply to a district

governed by this chapter whose principal purpose is providing

water for irrigation.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1995, 74th Leg., ch. 715, Sec. 5, eff. Sept. 1,

1995.

Sec. 51.0731. ELECTION DATE FOR CERTAIN DIRECTORS. The election

date for directors of a district proposing to provide or actually

providing water and sewer services or either of these services to

household users as the principal functions of the district shall

be the first Saturday in April.

Added by Acts 1973, 63rd Leg., p. 1539, ch. 559, Sec. 2, eff.

June 15, 1973. Amended by Acts 1975, 64th Leg., p. 625, ch. 256,

Sec. 1, eff. Sept. 1, 1975.

Sec. 51.0732. UNIFORM ELECTION DATE. Notwithstanding the

election date prescribed by Section 51.0731 of this code, an

election held under that section shall be held on a uniform

election date as provided by law.

Added by Acts 1987, 70th Leg., ch. 54, Sec. 25(l), eff. Sept. 1,

1987.

Sec. 51.075. APPLICATION TO GET ON BALLOT. A candidate for the

office of director or other elective office may file an

application with the secretary of the board to have the

candidate's name printed on the election ballot. The application

must be signed by the applicant or by at least 10 qualified

electors of the district and must be filed not later than 5 p.m.

of the 45th day before the date of the election.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1989, 71st Leg., ch. 1009, Sec. 1, eff. Sept. 1,

1989.

Sec. 51.076. SELECTION OF DIRECTORS IN CERTAIN DISTRICTS. (a)

In a district created after June 18, 1967, with boundaries

coterminous with the boundaries of a county, the commissioners

court may provide in the order granting the petition for creation

that the directors are to be selected either as provided in

Section 49.102 or by the "commissioners precinct method," which

provides for the election of two directors from each

commissioners precinct in the county and the election of one

director from the county at large.

(b) If the commissioners court provides for the commissioners

precinct method, it may appoint two qualified directors from each

commissioners precinct and one director from the county at large,

who shall serve until their successors are elected and have

qualified. Except for the provisions of this subsection, Section

51.026 of this code applies to the appointment of the initial

directors.

(c) The directors appointed by the commissioners court under

Subsection (b) of this section shall order an election in the

district on the second Tuesday in January following the creation

of the district. The two persons receiving the highest number of

votes in each precinct are the directors from that precinct, and

the person receiving the highest number of votes from the county

at large is the director at large.

(d) Of the two persons elected from each commissioners precinct,

the person who receives the highest number of votes in each

precinct shall serve for four years and until his successor is

elected and has qualified, and the person receiving the second

highest number of votes in each precinct shall serve for two

years and until his successor is elected and has qualified. The

person who is elected from the county at large shall serve for

four years and until his successor is elected and has qualified.

At each election after the first election, a person who is

elected director shall serve for four years and until his

successor is elected and has qualified.

(e) To be qualified for election as a director from a

commissioners precinct, a person must be 21 years of age, a

citizen of the state, and own land subject to taxation in the

commissioners precinct from which he is elected.

(f) To be qualified for election as a director from the county

at large, a person must possess the qualifications specified in

Section 51.072 of this code.

(g) If a vacancy occurs in the office of director between

regular elections, the vacancy shall be filled for the unexpired

term at a special election in the director's precinct. The

special election shall be called by a majority of the remaining

members of the board within 8 days after the vacancy occurs and

to be held not more than 40 days after the vacancy occurs.

(h) Except as otherwise provided in this section, all laws

relating to the election and qualification of directors of a

district shall govern and control the election and qualification

of directors selected by the commissioners precinct method

whether the precinct election is regular or special.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1983, 68th Leg., p. 5212, ch. 951, Sec. 3, eff.

Jan. 1, 1984; Acts 1995, 74th Leg., ch. 715, Sec. 6, eff. Sept.

1, 1995.

Sec. 51.085. DISTRICT TAX ASSESSOR AND COLLECTOR. The board may

appoint one person to the office of tax assessor and collector,

or it may order an election to fill that office.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.090. BONDS OF OFFICERS OF A DISTRICT ACTING AS FISCAL

AGENT OR COLLECTING MONEY FOR UNITED STATES. (a) If a district

is appointed fiscal agent for the United States or if a district

is authorized to make collections of money for the United States

in connection with a federal reclamation project, each director

and officer of the district including the tax assessor and

collector shall execute an additional bond in the amount required

by the secretary of the interior, conditioned on the faithful

discharge of his respective office and on the faithful discharge

by the district of its duties as fiscal or other agent of the

United States under its appointment or authorization.

(b) The additional bonds shall be approved, recorded, and filed

as provided in this chapter for other official bonds.

(c) Suit may be brought on the bonds by the United States or any

person injured by the failure of the officer or the district to

fully, promptly, and completely perform their respective duties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.0951. MEETINGS IN CERTAIN DISTRICTS. After at least 25

qualified electors are residing in a district covered by Section

51.0941 of this code, on written request of at least five of

these electors, the board shall designate a meeting place within

the district. On the failure to designate the location of the

meeting place within the district, five electors may petition the

commission to designate a location, which may be changed by the

board after the next election of members to the board.

Added by Acts 1973, 63rd Leg., p. 618, ch. 263, Sec. 2, eff. Aug.

27, 1973.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 51.121. PURPOSES OF DISTRICT. (a) A water control and

improvement district organized under the provisions of Article

III, Section 52, of the Texas Constitution, may provide for:

(1) the improvement of rivers, creeks, and streams to prevent

overflows, to permit navigation or irrigation, or to aid in these

purposes; or

(2) the construction and maintenance of pools, lakes,

reservoirs, dams, canals, and waterways for irrigation, drainage,

or navigation, or to aid these purposes.

(b) A water control and improvement district organized under the

provisions of Article XVI, Section 59, of the Texas Constitution,

may provide for:

(1) the control, storage, preservation, and distribution of its

water and floodwater and the water of its rivers and streams for

irrigation, power, and all other useful purposes;

(2) the reclamation and irrigation of its arid, semiarid, and

other land which needs irrigation;

(3) the reclamation, drainage, conservation, and development of

its forests, water, and hydroelectric power;

(4) the navigation of its coastal and inland water;

(5) the control, abatement, and change of any shortage or

harmful excess of water;

(6) the protection, preservation, and restoration of the purity

and sanitary condition of water within the state; and

(7) the preservation and conservation of all natural resources

of the state.

(c) The purposes stated in Subsection (b) of this section may be

accomplished by any practical means.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.122. ADOPTING RULES AND REGULATIONS. A district may

adopt and enforce reasonable rules and regulations to:

(1) secure and maintain safe, sanitary, and adequate plumbing

installations, connections, and appurtenances as subsidiary parts

of the district's sanitary sewer system;

(2) preserve the sanitary condition of all water controlled by

the district;

(3) prevent waste or the unauthorized use of water controlled by

the district;

(4) regulate privileges on any land or any easement owned or

controlled by the district; or

(5) provide and regulate a safe and adequate freshwater

distribution system.

Added by Acts 2001, 77th Leg., ch. 1423, Sec. 26, eff. June 17,

2001.

Sec. 51.125. CONSTRUCTION OF IMPROVEMENTS. A district may

construct all works and improvements necessary:

(1) for the prevention of floods;

(2) for the irrigation of land in the district;

(3) for the drainage of land in the district, including drainage

ditches or other facilities for drainage;

(4) for the construction of levees to protect the land in the

district from overflow;

(5) to alter land elevations where correction is needed; and

(6) to supply water for municipal uses, domestic uses, power and

commercial purposes, and all other beneficial uses or controls.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.127. ADOPTING RULES AND REGULATIONS. A district may

adopt and make known reasonable regulations to:

(1) secure and maintain safe, sanitary, and adequate plumbing

installations, connections, and appurtenances as subsidiary parts

of sanitary sewer systems;

(2) preserve the sanitary condition of all water controlled by

the district;

(3) prevent waste or the unauthorized use of water; and

(4) regulate residence, hunting, fishing, boating, and camping,

and all recreational and business privileges on any body or

stream of water, or any body of land, or any easement owned or

controlled by the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.128. EFFECT OF RULES AND REGULATIONS. After the

required publication, rules and regulations adopted by the

district under Section 51.127 of this code shall be recognized by

the courts as if they were penal ordinances of a city.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.129. PUBLICATION OF RULES AND REGULATIONS. (a) The

board shall publish once a week for two consecutive weeks a

substantive statement of the rules or regulations and the penalty

for their violation in one or more newspapers with general

circulation in the area in which the property of the district is

located.

(b) The substantive statement shall be as condensed as is

possible to intelligently explain the purpose to be accomplished

or the act forbidden by the rule or regulation.

(c) The notice must advise that breach of the regulations will

subject the violator to a penalty and that the full text of the

regulation is on file in the principal office of the district

where it may be read by any interested person.

(d) Any number of regulations may be included in one notice.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.130. EFFECTIVE DATE OF RULES AND REGULATIONS. The

penalty for violation of a rule or regulation is not effective

and enforceable until five days after the publication of the

notice. Five days after the publication, the published regulation

shall be in effect and ignorance of it is not a defense for a

prosecution for the enforcement of the penalty.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.133. CONSTRUCTING BRIDGES AND CULVERTS ACROSS AND OVER

COUNTY AND PUBLIC ROADS. The district shall build necessary

bridges and culverts across and over district canals, laterals,

and ditches which cross county or public roads. Funds of the

district shall be used to construct the bridges and culverts.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.134. CONSTRUCTING CULVERTS AND BRIDGES ACROSS AND UNDER

RAILROAD TRACKS, ROADWAYS, AND INTERURBAN OR STREET RAILWAYS.

(a) The district, at its own expense, may build necessary

bridges and culverts across or under any railroad tracks or

roadways of any railroad or any interurban, or street railway to

enable the district to construct and maintain any canal, lateral,

ditch, or other improvement of the district.

(b) Before the district builds a bridge or culvert, the board

shall deliver written notice to the local agent, superintendent,

roadmaster, or owner. The railroad company or its owner shall

have 60 days in which to build the bridge at its own expense and

according to its own plans.

(c) The canal, culvert, ditch, or structure shall be constructed

of sufficient size and proper plan to serve the purpose for which

it is intended.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.135. CONTRACTING FOR TOLL BRIDGES AND FERRY SERVICE.

(a) A district may make contracts with responsible persons for

the construction and operation of toll bridges over the

district's water for not more than 20 years or for ferry service

on or over the district's water for not more than 10 years.

(b) The contract shall set reasonable compensation to be charged

for service by the facility and shall require adequate bond or

bonds from the person with whom it enters into the contract,

payable to the district, on the conditions and in the amount

which the board considers necessary.

(c) The contracts may provide for forfeiture of the franchise

for a failure of the licensee to render adequate public service.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.149. CONTRACTS. (a) Notwithstanding Section 49.108(e),

no approval other than that specified in Subsection (c) need be

obtained in order for a contract between a district and a

municipality to be valid, binding, and enforceable against all

parties to the contract. After approval by a majority of the

electors voting at an election conducted in the manner of a bond

election, a district may make payments under a contract from

taxes for debt that does not exceed 30 years.

(b) A contract may provide that the district will make payments

under the contract from proceeds from the sale of notes or bonds,

from taxes, from any other income of the district, or from any

combination of these.

(c) A district may make payments under a contract from taxes,

other than maintenance taxes, after the provisions of the

contract have been approved by a majority of the electors voting

at an election held for that purpose.

(d) Any contract election may be held at the same time as and in

conjunction with an election to issue bonds, and the procedure

for calling the election, giving notice, conducting the election,

and canvassing the returns shall be the same as the procedure for

a bond election.

(e) A district created pursuant to Chapter 628, Acts of the 68th

Legislature, Regular Session, 1983, is defined as a municipal

corporation and political subdivision pursuant to Chapter 405,

Acts of the 76th Legislature, Regular Session, 1999, and is

authorized to take action accordingly.

Amended by Acts 1989, 71st Leg., ch. 328, Sec. 13, eff. Sept. 1,

1989; Acts 1995, 74th Leg., ch. 778, Sec. 1, eff. June 16, 1995;

Acts 2001, 77th Leg., ch. 965, Sec. 20.02, eff. Sept. 1, 2001;

Acts 2001, 77th Leg., ch. 966, Sec. 2.58, eff. Sept. 1, 2001;

Acts 2003, 78th Leg., ch. 1276, Sec. 18.010, eff. Sept. 1, 2003.

Sec. 51.150. CONTRACTS WITH OTHER DISTRICTS OR WATER SUPPLY

CORPORATIONS. (a) In this section, "authorized water district"

means a district created under Section 52(b)(1) or (2), Article

III, or Section 59, Article XVI, Texas Constitution.

(b) A district may enter into a contract with an authorized

water district or a water supply corporation that authorizes the

district to acquire, through the issuance of debt or other means,

and convey to the authorized water district or water supply

corporation all or part of a water supply, treatment, or

distribution system, a sanitary sewage collection or treatment

system, or works or improvements necessary for drainage of land

in the district. The contract may:

(1) permit the district to rehabilitate, repair, maintain,

improve, enlarge, or extend any existing facilities to be

conveyed to the authorized water district or water supply

corporation; or

(2) require the district to pay impact fees or other fees to the

authorized water district or water supply corporation for

capacity or service in facilities of the authorized water

district or water supply corporation.

(c) The contract entered into under Subsection (b) may authorize

the authorized water district or water supply corporation to

purchase the water, sewer, or drainage system from the district

through periodic payments to the district in amounts that,

combined with the net income of the district, are sufficient for

the district to pay the principal of and interest on any bonds of

the district. The contract may provide that the payments due

under this subsection:

(1) are payable from and secured by a pledge of all or part of

the revenues of the water, sewer, or drainage system;

(2) are payable from taxes to be imposed by the authorized water

district; or

(3) are payable from a combination of the revenues and taxes

described by Subdivisions (1) and (2).

(d) The contract may authorize the authorized water district or

water supply corporation to operate the water, sewer, or drainage

system conveyed by the district under Subsection (b).

(e) The contract may require the district to make available to

the authorized water district or water supply corporation all or

part of the raw or treated water to be used for the provision of

services within the district.

(f) If the contract provides for the water, sewer, or drainage

system to be conveyed to the authorized water district or water

supply corporation on or after the completion of construction,

the authorized water district or water supply corporation may pay

the district to provide water, sewer, or drainage services to

residents of the authorized water district or customers of the

water supply corporation.

(g) The contract may authorize the district to convey to the

authorized water district or water supply corporation at no cost

a water, sewer, or drainage system and require the authorized

water district or water supply corporation to use all or part of

those systems to provide retail service to customers within the

district in accordance with the laws of this state and any

certificate of convenience and necessity of the authorized water

district or water supply corporation.

(h) A contract under this section must be approved by a majority

vote of the governing bodies of the district and the authorized

water district or water supply corporation. If Section 52,

Article III, or Section 59, Article XVI, Texas Constitution,

requires that qualified voters of the district approve the

imposition of a tax by the district or the authorized water

district, the district or the authorized water district shall

call an election for that purpose.

Added by Acts 2005, 79th Leg., Ch.

962, Sec. 1, eff. June 18, 2005.

Sec. 51.156. CONTRACT WITH THE UNITED STATES. (a) The board of

a district organized under the provisions of Article XVI, Section

59, of the Texas Constitution to irrigate arid land may contract

with the United States for the investigation, construction,

extension, operation, and maintenance of any federal reclamation

project of benefit to the district and authorized under the

National Reclamation Act of 1902, as amended.

(b) The board may contract to secure a district water supply

from the federal reclamation project and to pay to the United

States the agreed cost of it in the form of construction charges,

operation and maintenance charges, and water rental charges, as

shown by the contract and in accordance with the terms and

conditions of the national reclamation law.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.157. CONSTRUCTION CHARGES UNDER A CONTRACT WITH THE

UNITED STATES. The construction charges under a contract with

the United States may include the cost of drainage and

flood-control works necessary to control floods or to maintain

the irrigability of district land, and the cost of incidental

electric power and municipal water service which the water supply

of the reclamation project makes feasible.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.158. ELECTION TO APPROVE A CONTRACT WITH THE UNITED

STATES. (a) The electors of the district shall vote to approve

every contract involving the payment of construction charges to

the United States. The provisions of this chapter relating to the

election to approve the validation of district bonds shall be

followed, including the prosecution of an action in court to

determine the validity of the contract.

(b) The notice of election shall state the maximum amount,

exclusive of operation and maintenance charges, water rental

charges, interest, and penalties, payable by the district to the

United States under the contract.

(c) The ballot shall be printed to provide for voting for or

against the proposition: "The contract with the United States and

levy of taxes to make payments under the contract." This is the

only proposition which may appear on the ballot.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.159. CONVEYING PROPERTY TO THE UNITED STATES. A

district may convey any property to the United States necessary

for the construction, operation, or maintenance of federal

reclamation works used or to be used for the benefit of the

district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.160. ENGINEERING DATA UNNECESSARY. If a district

contracts with the United States under the provisions of Section

51.155 of this code for use by the district of federal

reclamation works, the district need not prepare or file any

engineering data for the construction of the works.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.161. CONSENT OF UNITED STATES TO ALTER DISTRICT'S

BOUNDARIES. Until all money has been paid by the district which

is due to the United States under a contract relating to a

federal reclamation project, the United States must consent to

any change in the boundaries of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.162. TAXES LEVIED BY DISTRICT UNDER CONTRACT WITH THE

UNITED STATES. (a) A district which enters into a contract with

the United States shall levy annually sufficient taxes to provide

payment of all installments required by the contract.

(b) The board may apportion benefits and levy and collect taxes

on the benefit basis instead of the ad valorem basis with the

approval of the district electors.

(c) The board may pay construction charges when provided by

contract on the basis of the average gross annual acre income of

the land of the district or designated divisions or subdivisions

of the district. The secretary of the interior shall determine

the annual gross acre income.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.163. ASSESSMENTS FOR CONTRACTS WITH THE UNITED STATES.

The board shall levy annually sufficient assessments to collect

the money required to pay all the district's obligations in full

when due regardless of any delinquency in payment of assessments

by any tract of land. If collections in any year are insufficient

to pay the obligations of the district, the levy shall be

increased sufficiently the following year to cover the deficit.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.164. DURATION OF ANNUAL LEVIES FOR CONTRACTS WITH THE

UNITED STATES. The board shall continue annual levies for

payment of construction charges each year against each tract of

land in the district even though construction charges apportioned

against other tracts of land in the district may be paid sooner

or later.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.165. SUPERIORITY OF LIEN TO SECURE CONTRACT WITH THE

UNITED STATES. The lien against district land created by a

contract with the United States shall be superior to the lien

created by any district bonds approved subsequent to the date of

the contract with the United States.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.166. DISTRICT'S AUTHORITY TO SOLICIT COOPERATION,

DONATIONS AND CONTRIBUTIONS FROM OTHER AGENCIES. A district

organized under the provisions of this chapter may solicit

cooperation, donations, and contributions from the United States,

the state, or any other state or nation; any county,

municipality, water improvement district, water control and

improvement district, drainage district, or any other political

subdivision of the state; or any person, copartnership,

corporation, or association.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.167. EXPENSE OF PROCURING COOPERATION AND CONTRIBUTIONS

FROM OTHER AGENCIES. A district may incur reasonable expense to

procure cooperation under Section 51.166 of this code in adding

to the area of the district or with contributions to the cost of

improvements made by the district. The contributions may be

either a percentage of cost or a definite annual sum.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.168. AUTHORITY OF CONTRIBUTOR. (a) Any water

improvement district, water control and improvement district,

levee improvement district, county, city, town, or other

political subdivision of the state may contract to contribute to

the cost of the construction of drainage, flood-control or

water-supply improvements, or the changing of land elevations

which need correction. The improvements to be constructed may be

outside the contributing district, municipality, or other

political subdivision of the state, and may be located outside

the state or the United States.

(b) The works may be constructed by any agency.

(c) The contribution shall be proportionate to the benefit which

the contributor will derive from the proposed improvements.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.169. ISSUANCE OF BONDS BY CONTRIBUTOR. (a) The

contract may provide for the issuance of bonds by the contributor

and for direct payment from the proceeds of the bonds to

contractors on the estimates of the engineer for the contributor.

(b) Before issuing bonds, a contributing political subdivision

shall submit the contract for contribution to its electors for

approval and for authority to issue the bonds, fix a lien to

secure the bonds, and levy, assess, and collect taxes to retire

the bonds. The procedure by a contributing political subdivision

of the state shall conform to the applicable law under which the

political subdivision was organized and authorized to create

bonded indebtedness.

(c) The disposition of the proceeds of the bonds shall conform

to the approved contract of contribution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.170. ANNUAL TAX BY CONTRIBUTOR. (a) The contract for

contribution may provide that instead of issuing bonds the

contributor may levy, assess, and collect an annual tax in a

specific sum. The levy or assessment is a lien on the property

subject to the contributor's taxing power.

(b) The contributor shall collect the tax at its own expense and

pay it annually to the district to which the contribution is to

be made. The district shall hold the annual payment as a trust

fund and annually apply it to the bonds issued by it to provide

funds for the construction of the improvements to which the

contribution is made.

(c) The contributor shall submit the contract of contribution to

its electors for approval and for authority to levy and assess a

sufficient tax to meet the annual payments fixed in the contract.

The election for the approval of the contract and the authorized

taxes for the fulfillment of the contract shall conform to

appropriate law under which the contributing political

subdivision was organized and authorized to create bonded

indebtedness.

(d) Payment of the annual sums of contribution shall conform to

the contract of contribution.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.171. CONTRIBUTIONS FROM UNAPPROPRIATED OR AVAILABLE

FUNDS OF CONTRIBUTOR. (a) If the proposed contributor has an

unappropriated fund or a fund which is not required for actual

use even though otherwise appropriated, the fund may be withdrawn

from the project which does not need it and may be applied to pay

contributions to the cost of the improvements considered to be a

benefit to the contributor but to be constructed by another

agency or jointly by the contributor and another agency.

(b) The board of the contributing political subdivision may

contract for contributions and contribute from an unappropriated

or available fund without submitting the contract and

contributions to a vote of the electors of the contributor.

However, the contributions shall not be made if they impair the

ability of the contributor to meet any outstanding obligation or

to adequately and economically discharge the contributor's duty

to its electorate or constituency.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.172. LIABILITY ON CONTRACTS OF ACQUIRED IRRIGATION

SYSTEM. If a district acquires an established irrigation system

which has contracted to supply water to others and the holders of

the contracts or the lands entitled to service of water are not

within the district, the contracts and duties shall be performed

by the district in the same manner and to the same extent that

any other purchaser of the system would be bound.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.173. AUTHORITY TO LEASE IRRIGATION SYSTEM SERVING THE

DISTRICT. (a) The board, by resolution, may lease all or part

of any irrigation system serving all or part of the district,

including distribution laterals, trunk or transmission canals,

pumping plants, intakes, and all usual or necessary

appurtenances. The board's resolution will specify the term of

the lease, which may not be more than 40 years.

(b) The board may lease property located partly outside the

boundaries of the district and may sell surplus water to other

districts and to other consumers.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.174. COVENANTS AND AGREEMENTS INCLUDED IN LEASE. (a)

The lease shall expressly state that the sums payable under the

terms of the lease and the lease itself shall not constitute an

indebtedness or pledge of the general credit of the district

within the meaning of any constitutional or statutory limitation

of indebtedness. The lease shall contain a statement that

payments due under it are not payable from any funds raised or to

be raised by taxation.

(b) The lease may contain covenants and agreements which are not

inconsistent with the provisions of this code which authorize the

lease for:

(1) the management and operation of the leased properties;

(2) the imposition and collection of charges for water;

(3) the disposition of the proceeds of charges;

(4) the insurance, protection, and maintenance of the leased

properties;

(5) the creation of other obligations payable from the revenues

derived from the operation of the leased properties;

(6) the keeping of books and records by the district; and

(7) other pertinent provisions which the board considers

desirable to assure the payment of amounts due under the lease.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.175. REVENUE FOR PAYMENT OF LEASE RENTAL. (a) All

money due the lessor under the lease shall be payable solely from

the revenue derived by the district from the sale of water

supplied through the leased system.

(b) The board shall set and collect charges for the water

supplied through the leased properties to produce sufficient

revenue at all times to allow for delinquencies and to pay

promptly all rental payments becoming due under the terms of the

lease. The board may agree to deposit this money in a separate

fund as a first charge on the gross revenue received each year

from sales of water, and which shall not be used for any other

purpose.

(c) The board may agree in the lease to pay all expenses of

operating and maintaining the leased properties from the fund

provided by the board each year for the maintenance and operation

expenses of the district so that the gross revenue from sale of

water will be available exclusively for payment of rentals until

the amount required for rentals each year is paid into the

separate rental fund.

(d) If the board includes this agreement in the lease, the board

shall provide for the payment of sums into the maintenance fund

from sources other than the remaining portions of the gross

revenue from the sale of water not required to pay rentals which

are sufficient each year to pay all expenses of operating the

district and maintaining and operating its properties and

facilities, including the leased properties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.1751. ADDITIONAL SOURCES FOR PAYMENT OF LEASE. (a)

Notwithstanding any other provision of this chapter, a district

may make payments from tax revenue under a lease of all or any

part of an irrigation system as provided in Section 51.173 of

this code if the lease is approved by a majority of the qualified

voters voting at an election held for that purpose.

(b) An election for the approval of a lease shall be called and

conducted, the returns canvassed, and notice of the election

given under the same procedure as a bond election in the

district. The election may be held on the same day as a bond

election of the district.

(c) If the lease is approved at the election and authorized by

the board of directors, it shall constitute an obligation against

the taxing power of the district, and the district shall levy,

assess, and collect taxes to the extent provided in the lease.

Added by Acts 1979, 66th Leg., p. 883, ch. 403, Sec. 2, eff. June

6, 1979.

Sec. 51.176. RECEIVER FOR LEASED IRRIGATION SYSTEM. (a) If the

district defaults in the payments due under a lease, the lessor

may petition a court of competent jurisdiction to appoint a

receiver for the leased properties.

(b) The receiver shall operate the properties and collect and

distribute the revenue according to the terms of the lease and

the direction of the court.

(c) The receiver has the same rights and powers as the board in

its operation of the leased properties.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.177. JOINT LEASE BY TWO OR MORE DISTRICTS. The boards

of two or more districts may adopt resolutions to enter into a

joint lease under the provisions of Section 51.173 of this code.

The joint lease shall specify clearly the respective rights and

liabilities of the districts and shall be subject to all the

provisions of Sections 51.173-176 of this code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.178. AUTHORITY TO ACQUIRE IRRIGATION SYSTEM SUBJECT TO

MORTGAGE. A district may acquire by gift, grant, or purchase any

part of an irrigation system serving the district which is

subject to a mortgage or encumbrance. The mortgage or encumbrance

shall not be assumed by the district and shall not be an

indebtedness of the district but shall constitute solely a charge

on the encumbered property and the revenue from it.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.179. REVENUE FOR PAYMENT OF MORTGAGE. (a) The board

may determine conclusively by resolution whether the mortgage or

encumbrance represents all or part of the cost of the acquired

property and constitutes a purchase money lien on the property.

(b) The board may contract to use and pledge its revenue derived

solely from the sale of water and services supplied through the

acquired properties for the payment of a purchase money lien.

(c) The board also may use revenue from taxation or from the

issuance and sale of bonds to pay all or part of the amount due

under the encumbrance if a majority of the electors of the

district voting at an election on this proposition approve its

use.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.180. ELECTION TO APPROVE REVENUE FOR PAYMENT OF

MORTGAGE. (a) If tax and bond revenue is pledged to pay amount

due under the encumbrance, the district must hold an election and

receive the approval of the electors.

(b) An election to approve the use of tax and bond revenue shall

be held in the same manner and with the same voters'

qualifications as provided for elections on the issuance of the

bonds of the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.181. JOINT ACQUISITION OF MORTGAGED SYSTEM BY TWO OR

MORE DISTRICTS. (a) Two or more districts jointly may acquire

by gift, grant, or purchase any part of an irrigation system

serving the districts subject to a mortgage or encumbrances in

the same manner that a single district may acquire the system.

(b) In the proceedings authorizing the acquisition, the boards

of the respective districts shall define clearly the respective

rights, interest, and liability of the districts in the acquired

property and in the mortgage or encumbrance.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.182. AUTHORITY TO LEASE FACILITIES TO WATER CUSTOMERS.

(a) A district may lease to any person, firm, or corporation

which is a bona fide water customer of the district any of its

river pump stations, conveyance canals, off-channel reservoirs,

reservoir pump stations, water mains, water treatment plants, or

other facilities used in connection with them. The lease may

include any of the district's land which is appropriate to the

utilization of the leased facilities, including but not limited

to land acquired by eminent domain.

(b) The board and the lessee shall agree on the form of the

lease and its terms, conditions, provisions, and stipulations;

however, the duration of the lease shall not be longer than the

duration of the water contract between the district and the

lessee under the primary term of the water contract and any

renewal or extension of it.

(c) After a lease to a water customer is authorized by the

board, the lease shall be executed by the president or vice

president of the board and attested by the secretary. The lease

is valid and effective without any other requirement or

prerequisite by the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.184. PREFERENCE IN USE OF WATER. (a) The board may

award the use of district water in the following order of

preference and superiority:

(1) domestic and municipal use;

(2) industrial use, other than the development of hydroelectric

power;

(3) irrigation;

(4) development of hydroelectric power;

(5) pleasure and recreation.

(b) The board may withdraw water from an inferior use and

appropriate the water to a superior use when required for the

welfare of the district.

(c) The board must use the condemnation procedures in Subchapter

F of this chapter for a withdrawal or diversion of the use of

water which affects a vested right.

(d) The board may implement the action prescribed in Subsection

(b) or in Subsections (b) and (c) above, and shall obtain

necessary amendments to the district's permit, certified filing,

or certificate of adjudication in the manner provided in Section

11.122 of this code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1975, 64th Leg., p. 1250, ch. 473, Sec. 1, eff.

June 19, 1975; Acts 1981, 67th Leg., p. 980, ch. 367, Sec. 16,

eff. June 10, 1981.

Sec. 51.185. SUIT TO PROTECT WATER RIGHTS. The board may

institute and maintain any suit or suits to protect the water

supply or other rights of the district, to prevent any unlawful

interference with the water supply or other rights of the

district, or to prevent a diversion of its water supply by

others.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.186. TRANSFER OF WATER RIGHT. If there is land in a

district which has a water right from a source of supply acquired

by the district but the land is difficult or impracticable to

irrigate from that source of supply, the district may allow

transfer of the water right to other land which is adjacent to

the district. The adjacent land may be admitted to the district

with the same right of water service as the land from which the

water was transferred.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.187. SELLING WATERPOWER PRIVILEGES. (a) The district

may enter into a contract to sell waterpower privileges if power

can be generated from water flowing from the district's

reservoirs or within its canal system.

(b) The sale of waterpower privileges may not interfere with the

district's obligation to furnish an adequate supply of water for

the purpose for which the district was organized and for

municipal purposes in districts which furnish water for municipal

purposes.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.188. SELLING SURPLUS WATER. The district may sell any

surplus district water for use in irrigation or for domestic or

commercial uses to any person who owns or uses land in the

vicinity of the district or to other districts which include land

in the same vicinity.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.189. PUMPING WATER TO ANOTHER DISTRICT. If the board

considers it advisable, it may contract to pump for or supply

another district any water in which the other district has a

right. The board shall provide the terms of the contract.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.190. OBTAINING TOPOGRAPHIC MAPS AND DATA. The executive

director shall furnish to a district topographic maps and data

concerning all projects for the control of floods undertaken by

the district and all projects for the storage of water or

creation of reservoirs undertaken by the district.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 961, ch. 367, Sec. 1, eff.

June 10, 1981.

Sec. 51.194. SALE OF PROPERTY NOT ACQUIRED TO CARRY OUT THE

PLANS OF THE DISTRICT. The board may sell property bid in by it

at any sale under foreclosure of its tax lien or of its lien for

charges or assessments, or any property acquired by it other than

for the purpose of carrying out the plans of the district,

without formally determining that the property is not required to

carry out the plans of the district, without giving notice of the

intent of the district to sell the property, and without applying

the proceeds of the sale as provided in Section 51.192 of this

code.

Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.195. PROHIBITED CHARGES AND FEES. (a) In this section,

"undeveloped property" means property within the district to

which water or sewer services are actually available and to which

no water or sewer connections have been made.

(b) Except as provided in Subsection (c) of this section, no

district in which the ratio of the assessed valuation of property

to the amount of bonded indebtedness of the district is at least

15 to 1, proposing to provide or actually providing water and

sewer services or either of these services to household users as

the principal function of the district, may adopt and impose on

the owners of undeveloped property in the district a charge or

fee on the undeveloped property that is in addition to taxes

levied on that property.

(c) If the board of directors of a district covered by this

section desires to adopt and impose a charge or fee prohibited by

Subsection (b) of this section, it shall submit to the commission

a petition for authority to adopt and impose the charge or fee.

If the commission finds that it will be in the best interest of

the district and property owners of the district, the commission

shall approve the adoption and imposition of the charge or fee

for a period of not more than three years. The imposition of a

charge or fee may be renewed for additional periods of three

years in the manner provided in this section for initial approval

of the charge or fee.

Added by Acts 1979, 66th Leg., p. 437, ch. 198, Sec. 1, eff. Jan.

1, 1980.

Sec. 51.196. DEVELOPMENT OF UNDERGROUND WATER BY CERTAIN

DISTRICTS. A conservation and reclamation district created by

special law under the authority of Section 59, Article XVI, Texas

Constitution, and designated as a municipal water district to

which the administrative and taxing provisions applicable to

districts governed by this chapter apply, may develop or

otherwise acquire underground sources of water, notwithstanding a

provision in that district's special law otherwise prohibiting

the development of acquisition of underground water.

Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.45, eff. Sept. 1,

1997.

SUBCHAPTER E. ELECTION PROVISIONS

Sec. 51.221. ELIGIBILITY TO VOTE: MAVERICK COUNTY WATER CONTROL

AND IMPROVEMENT DISTRICT NO. 1. (a) In this section, "district"

means the Maverick County Water Control and Improvement District

No. 1.

(b) A person is eligible to vote in an election conducted by the

district if the person:

(1) is 18 years of age or older;

(2) is a United States citizen;

(3) is an individual who holds title to or an interest in title

to irrigable farmland or ranch land within the boundaries of the

district; and

(4) receives and uses irrigation water delivered by the district

by and through the district's canal system.

(c) A person eligible to vote under Subsection (b) must register

with the district not later than the 30th day before the date of

a district election in order to vote in that district election.

The district shall file with the county clerk of Maverick County

a certified copy of the list of the district's registered voters

not later than the 25th day before the date of each district

election.

Added by Acts 2001, 77th Leg., ch. 60, Sec. 1, eff. Sept. 1,

2001.

SUBCHAPTER F. ENFORCEMENT

Sec. 51.241. PENALTY FOR VIOLATION OF REGULATION. A person who

violates a regulation adopted by a district under this chapter or

other law commits an offense. An offense under this section is a

Class C misdemeanor.

Added by Acts 2001, 77th Leg., ch. 1423, Sec. 27, eff. June 17,

2001. Renumbered from Water Code Sec. 51.221 by Acts 2003, 78th

Leg., ch. 1275, Sec. 2(149), eff. Sept. 1, 2003.

SUBCHAPTER G. WATER CHARGES AND ASSESSMENTS

Sec. 51.301. STATEMENT ESTIMATING WATER REQUIREMENTS AND PAYMENT

OF CHARGE. (a) Each person who desires to receive water at any

time during the year shall furnish the secretary of the board a

written statement of the acreage he intends to irrigate and the

different crops he intends to plant with the acreage of each

crop.

(b) At the time the acreage estimate is furnished to the

secretary, each person applying for water shall pay the portion

of the water charge or assessment set by the board.

(c) If a person does not furnish the statement of estimated

acreage or does not pay the part of the water charge or

assessment set by the board before the date for fixing the

assessment, the district is not obligated to furnish water to

that person during that year.

Acts 1971, 62nd Leg., p. 324, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.302. CONTRACTS WITH PERSON USING WATER. (a) The board

may require each person who desires to use water during the year

to enter into a contract with the district which states the

acreage to be watered, the crops to be planted, the amount to be

paid for the water, and the terms of payment.

(b) If a person irrigates more land than his contract specifies,

he shall pay for the additional service.

(c) The directors also may require a person using water to

execute a negotiable note or notes for all or part of the amount

owed under the contract.

(d) The contract is not a waiver of the lien given to the

district under Section 51.309 of this code against the crops of a

person using water for the service furnished to him.

Acts 1971, 62nd Leg., p. 324, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.303. AUTHORITY TO DETERMINE RULES AND REGULATIONS. The

board may adopt, alter, and rescind rules, regulations, and

standing and temporary orders which do not conflict with the

provisions of this subchapter and which govern:

(1) methods, terms, and conditions of water service;

(2) applications for water;

(3) assessments for maintenance and operation;

(4) payment and the enforcement of payment of the assessments;

(5) furnishing water to persons who did not apply for it before

the date of assessment; and

(6) furnishing water to persons who wish to take water for

irrigation in excess of their original applications or for use on

land not covered by their original applications.

Acts 1971, 62nd Leg., p. 325, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.304. BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING

EXPENSES. The board, on or as soon as practicable after a date

fixed by standing order of the board, shall estimate the expenses

of maintaining and operating the irrigation system for the next

12 months. The board may change the 12-month period for which it

estimates the expenses of maintaining and operating the

irrigation system by estimating such expenses for a shorter

period so as to adjust to a new fixed date and thereafter

estimating the expenses for 12-month periods following the

adjusted fixed date.

Acts 1971, 62nd Leg., p. 325, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1997, 75th Leg., ch. 789, Sec. 1, eff. Sept. 1,

1997.

Sec. 51.305. DISTRIBUTION OF ASSESSMENT. (a) Not less than

one-third nor more than two-thirds of the estimated maintenance

and operating expenses shall be paid by assessment against all

land in the district to which the district can furnish water

through its irrigation system or through an extension of its

irrigation system.

(b) The assessments shall be levied against all irrigable land

in the district on a per acre basis, whether or not the land is

actually irrigated. The board shall determine from year to year

the proportionate amount of the expenses which will be borne by

water users.

(c) The remainder of the estimated expenses shall be paid by

assessments against persons in the district who use or who make

application to use water. The board shall prorate the remainder

as equitably as possible among the applicants for water and may

consider the acreage each applicant will plant, the crop he will

grow, and the amount of water per acre he will use.

Acts 1971, 62nd Leg., p. 325, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1971, 62nd Leg., p. 1770, ch. 518, Sec. 12, eff.

May 31, 1971.

Sec. 51.306. NOTICE OF ASSESSMENTS. (a) Public notice of all

assessments shall be given by posting printed notices of the

assessment in at least three public places in the district.

(b) Notice shall be mailed to each landowner at the address

which the landowner shall furnish to the board.

(c) The notice shall be posted in a public place and mailed to

each landowner five days before the assessment is due, and notice

of special assessments shall be given within 10 days after the

assessment is levied.

Acts 1971, 62nd Leg., p. 325, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.307. PAYMENT OF ASSESSMENTS. (a) All assessments shall

be paid in installments at the times fixed by the board.

(b) If a crop for which water was furnished by the district is

harvested before the due date of any installment payment, the

entire unpaid assessment becomes due at once and shall be paid

within 10 days after the crop is harvested and before the crop is

removed from the county or counties in which it was grown.

Acts 1971, 62nd Leg., p. 325, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.308. COLLECTION OF ASSESSMENTS BY TAX ASSESSOR AND

COLLECTOR. (a) Under the direction of the board, the assessor

and collector, or other person designated by the board, shall

collect all assessments for maintenance and operating expenses.

(b) The assessor and collector shall execute a bond in an amount

determined by the board, conditioned on the faithful performance

of his duties and accounting for all money collected.

(c) The assessor and collector shall keep an account of all

money collected and shall deposit the money as collected in the

district depository. He shall file with the secretary of the

board a statement of all money collected once each week.

(d) The assessor and collector shall use a duplicate receipt

book, give a receipt for each collection made, and retain in the

book a copy of each receipt, which shall be kept as a record of

the district.

Acts 1971, 62nd Leg., p. 326, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.309. LIEN AGAINST CROPS. The district shall have a

first lien, superior to all other liens, against all crops grown

on each tract of land in the district to secure the payment of

the assessment, interest, and collection or attorney's fees.

Acts 1971, 62nd Leg., p. 326, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.310. LIST OF DELINQUENT ASSESSMENTS. Assessments not

paid when due shall become delinquent on the first day of the

month following the date payment is due, and the board shall post

in a public place in the district a list of all persons who are

delinquent in paying their assessments and shall keep posted a

correct list of all persons who are delinquent in paying

assessments. If a person who owes an assessment has executed a

note and contract as provided in Section 51.302 of this code, he

shall not be placed on the delinquent list until after the

maturity of the note and contract.

Acts 1971, 62nd Leg., p. 326, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1997, 75th Leg., ch. 789, Sec. 1, eff. Sept. 1,

1997.

Sec. 51.311. WATER SERVICE DISCONTINUED. If a landowner fails

or refuses to pay a water assessment when due, his water supply

shall be cut off, and no water may be furnished to the land until

all back assessments are fully paid. The discontinuance of water

service is binding on all persons who own or acquire an interest

in land for which assessments are due.

Acts 1971, 62nd Leg., p. 326, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.312. SUITS FOR DELINQUENT ASSESSMENTS. Suits for

delinquent water assessment may be brought either in the county

in which the district is located or in the county in which the

defendant resides. All landowners are personally liable for

assessments provided in this subchapter.

Acts 1971, 62nd Leg., p. 326, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.313. INTEREST AND COLLECTION FEES. (a) All assessments

shall bear interest from the date payment is due at the rate of

15 percent a year. Assessments not paid by the first day of the

month following the date payment is due shall become delinquent,

and a penalty of up to 15 percent of the amount of the past-due

assessment shall be added to the amount due.

(b) If suit is filed to foreclose a lien on crops or if a

delinquent assessment is collected by an attorney before or after

suit, an additional amount of 15 percent on the unpaid

assessment, penalty, and interest shall be added as collection or

attorney's fees.

Acts 1971, 62nd Leg., p. 327, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1995, 74th Leg., ch. 346, Sec. 1, eff. Jan. 1,

1996; Acts 1997, 75th Leg., ch. 789, Sec. 1, eff. Sept. 1, 1997.

Sec. 51.314. RIGHTS OF THE UNITED STATES. (a) If the board

enters into a contract with the United States, the remedies in

this subchapter available to the district also shall apply to

enforce payment of charges due to the United States. The federal

reclamation laws shall also apply.

(b) The directors shall distribute and apportion all water

acquired by the district under a contract with the United States

in accordance with acts of Congress, rules and regulations of the

secretary of the interior, and provisions of the contract.

Acts 1971, 62nd Leg., p. 327, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.315. SURPLUS ASSESSMENTS. If assessments made under

this subchapter are more than sufficient to pay the necessary

expenses of the district, the balance shall be carried over to

the next year.

Acts 1971, 62nd Leg., p. 327, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.316. INSUFFICIENT ASSESSMENTS. If the assessments made

under this subchapter are not sufficient to pay the necessary

expenses of the district, the unpaid balance shall be assessed

pro rata, in accordance with the assessments made for the current

year. The additional assessments shall be paid under the same

conditions and penalties within 30 days after the date of

assessment.

Acts 1971, 62nd Leg., p. 327, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.317. DETERMINING MAINTENANCE AND OPERATION CHARGES. The

board may make, establish, and collect maintenance and operation

charges for service on the basis of the quantity of water

furnished or appropriate measure of the service rendered.

Acts 1971, 62nd Leg., p. 327, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.318. CHARGES FOR MAINTENANCE EXPENSES. (a) If

maintenance charges are based on the quantity of water used, a

fixed minimum charge may be made on all land, water connections,

or other service entitled to receive and use water. An additional

charge may be made for the use of more water than that covered by

the minimum charge.

(b) The board may install proper measuring devices or require

that they be installed.

Acts 1971, 62nd Leg., p. 327, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.319. CHARGE TO CITIES AND TOWNS. If a district includes

a city or town or contracts with a city or town to supply water

to it, the charge for the use of the water and the time and

manner of payment shall be determined by the board or fixed by

the contract made with the board.

Acts 1971, 62nd Leg., p. 327, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.320. LOANS FOR MAINTENANCE AND OPERATING EXPENSES. The

board may borrow money to pay maintenance and operating expenses

at an interest rate of not more than 10 percent a year and may

pledge as security any of its notes or contracts with water users

or accounts against them.

Acts 1971, 62nd Leg., p. 328, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.321. WATER SERVICE: REFUSED. The board may refuse water

service to any person who refuses to pay the charges and

assessments for water service or who fails or refuses to pay any

taxes levied against his property after six months from the date

the taxes become delinquent.

Acts 1971, 62nd Leg., p. 328, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER H. WASTE DISPOSAL AND CONTROL OF STORM WATER

Sec. 51.331. AUTHORITY TO DISPOSE OF WASTE AND CONTROL STORM

WATER. (a) A district may include in its purposes and plans all

improvements, facilities, plants, equipment, and appliances

incident to or helpful or necessary to the collection,

transportation, processing, disposal, and control of all

domestic, industrial, or communal wastes, whether fluids, solids,

or composites, and to gather, conduct, divert, and control local

storm water or other local harmful excesses of water.

(b) The district may use any mechanical or chemical means or

processes incident, necessary, or helpful to accomplish these

purposes, and to conserve and promote the public health and

welfare, and to protect, effect, or restore the purity and

sanitary condition of the state's water.

Acts 1971, 62nd Leg., p. 328, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.332. INCREASING DISTRICT'S POWERS. (a) A district

operating under the provisions of this chapter which did not at

the time of its creation have the powers provided in Section

51.331 of this code may assume the additional powers in the same

manner and by the same procedures as provided in this subchapter,

except that it is not necessary to hold an election to confirm

the order establishing the district's increased powers.

(b) The board may not issue a money obligation to finance the

increased functions, facilities, and powers until after the

electors of the district have authorized it by a constitutional

and statutory majority vote as provided by this chapter to

control the issuance of preliminary bonds or construction bonds

as the proposal may require.

Acts 1971, 62nd Leg., p. 328, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.333. APPROVAL OF PETITION CREATING DISTRICT. (a) The

commission shall hear and determine the petition to create a

district to exercise the powers and functions provided in Section

51.331 of this code.

(b) The commission shall hear and determine the petition under

the applicable provisions of Sections 51.027-51.031 of this code.

(c) The executive director shall render technical aid concerning

the petition and plans of the district.

(d) Nothing in this section impairs the right of the

commissioners court to grant a petition under the provisions of

Section 51.021 of this code relating to a district to be located

wholly in one county if the district will not have the powers

provided in Section 51.331 of this code.

Acts 1971, 62nd Leg., p. 328, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 980, ch. 367, Sec. 17, eff.

June 10, 1981; Acts 1995, 74th Leg., ch. 76, Sec. 11.322, eff.

Sept. 1, 1995.

Sec. 51.334. ELECTION PROVISIONS. The provisions of Sections

51.035-51.037 of this code shall not apply to an election to

create a district to exercise the powers provided in Section

51.331 of this code.

Acts 1971, 62nd Leg., p. 329, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.335. OTHER GOVERNMENTAL AGENCIES INCLUDED. (a) A

district proposing to exercise the powers and to perform the

functions provided in this subchapter may include any part of

areas already included within the boundaries of any political

subdivision, governmental agency, or body politic of the state.

(b) The district shall not usurp functions or duplicate a

service already adequately exercised or rendered by the other

governmental agency except under a valid contract with the other

governmental agency.

Acts 1971, 62nd Leg., p. 329, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.336. ADDITIONAL LAND. Additional defined areas may be

added to the district in the manner provided in this subchapter

for creation of a district.

Acts 1971, 62nd Leg., p. 329, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.337. POWERS OF DISTRICT. The district has all the

powers and rights of procedure, financing, construction,

maintenance, rehabilitation, operation, and administration

conferred by Article XVI, Section 59, of the Texas Constitution,

and by this chapter.

Acts 1971, 62nd Leg., p. 329, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.338. RULES, REGULATIONS, AND CHARGES. (a) The district

may adopt and enforce reasonable rules, regulations, and specific

charges, fees, or rentals, in addition to taxes, for providing

any district facility or service.

(b) The board shall publish a copy of the adopted orders and

regulations once a week for two consecutive weeks in one or more

newspapers with general circulation in the district and record

the adopted orders and regulations in full in the minutes of the

district.

(c) After the required publication and recording, the police

power of the district, as provided in this chapter, may be

exercised to enforce the intent of the orders, and the district

may discontinue a facility or service to prevent an abuse or to

enforce payment of a due and unpaid charge, fee, or rental,

including taxes that are due and have remained unpaid for at

least six months on the date of the discontinuance.

Acts 1971, 62nd Leg., p. 329, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1989, 71st Leg., ch. 502, Sec. 1, eff. June 14,

1989; Acts 1989, 71st Leg., ch. 1218, Sec. 5, eff. Aug. 28, 1989.

Sec. 51.339. TAXES. The district, either solely or in

connection with other powers granted by this chapter, may impose

taxes in addition to the taxes which may have been or may be

imposed by another governmental agency included in the district.

Acts 1971, 62nd Leg., p. 329, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER I. GENERAL FISCAL PROVISIONS

Sec. 51.351. CONSTRUCTION FUND. (a) The proceeds from the sale

of bonds shall be deposited in the construction fund.

(b) Money deposited in the construction fund shall be used to

pay expenses, debts, and obligations necessarily incurred in the

creation, establishment, and maintenance of the district and to

pay the purchase price of property and construction contracts,

including purchases for which the bonds were issued.

(c) If the bonds were issued in accordance with a contract with

the United States, debts and obligations may be paid from the

construction fund under the terms of or incident to the contract.

(d) After the payment of obligations for which the bonds were

issued, any remaining money in the construction fund may be

transferred to the maintenance fund.

Acts 1971, 62nd Leg., p. 330, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.352. MAINTENANCE FUND. (a) The district shall have a

maintenance fund which shall include money collected by

assessment or other method for the maintenance, repair, and

operation of the properties and plant of the district or for

temporary annual rental due to the United States.

(b) The maintenance fund shall be used to pay all expenses of

maintenance, repair, and operation of the district except the

expenses of assessing and collecting taxes for the interest and

sinking fund. Expenses for collecting taxes for the interest and

sinking fund shall be paid from the interest and sinking fund.

(c) The district may pay from the maintenance fund other

expenses for which the payment is not provided in this chapter.

Acts 1971, 62nd Leg., p. 330, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.353. AMORTIZATION AND EMERGENCY FUND. (a) The board

shall have a competent engineer make an inspection and valuation

of the physical property of the district which is subject to

decay, obsolescence, injury, or damage by sudden, accidental, or

unusual causes, and based on the inspection and valuation, the

engineer shall determine as nearly as he can a sufficient amount

to be set aside annually to pay for replacement of each item of

physical property at the end of its economic life or for the

restoration or replacement of any item of physical property if it

is lost, injured, or damaged.

(b) The board shall set aside a portion of the maintenance fund

as it is collected equal to the amount determined under

Subsection (a) of this section and shall place this money in the

amortization and emergency fund. No part of this fund may be

spent except to replace amortized property or to replace or

restore lost, injured, or damaged property.

(c) Any amount in the amortization and emergency fund which is

not spent for the purposes for which the fund was created may be

invested in bonds or interest bearing securities of the United

States.

(d) The board is not required to create an amortization and

emergency fund, but if the board does create the fund, it shall

be kept up and maintained.

Acts 1971, 62nd Leg., p. 330, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER K. ISSUANCE OF BONDS

Sec. 51.401. AUTHORITY TO ISSUE BONDS OF DISTRICTS OPERATING

UNDER ARTICLE III, SECTION 52, OF THE TEXAS CONSTITUTION. A

district which is operating under Article III, Section 52, of the

Texas Constitution, may issue bonds and lend its credit in an

amount of not more than one-fourth of the assessed valuation of

the real property in the district. However, the total

indebtedness of any city or town may never be more than the

limits imposed by the Texas Constitution.

Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.402. AUTHORITY TO ISSUE BONDS OF DISTRICTS OPERATING

UNDER ARTICLE XVI, SECTION 59, OF THE TEXAS CONSTITUTION. A

district operating under Article XVI, Section 59, of the Texas

Constitution, may incur debt evidenced by the issuance of bonds

for any purpose authorized by this chapter, Chapter 49, or other

applicable laws, including debt which is necessary to provide

improvements and maintenance of improvements to achieve the

purposes for which the district was created.

Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by:

Acts 2005, 79th Leg., Ch.

962, Sec. 2, eff. June 18, 2005.

Sec. 51.403. AMOUNT OF DEBT LIMITED BY CONSTITUTION. No

district may issue bonds or create indebtedness in an amount

which is more than that authorized by the Texas Constitution.

Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.404. ISSUANCE OF PRELIMINARY BONDS. A district may

issue preliminary bonds to create a fund to pay:

(1) costs of organization;

(2) costs of making surveys and investigations;

(3) attorney's fees;

(4) costs of engineering work;

(5) costs of the issuance of bonds; and

(6) other costs and expenses incident to organization of the

district and its operation in investigating and determining plans

for its plant and improvements and in issuing and selling bonds

to provide for permanent improvements.

Acts 1971, 62nd Leg., p. 335, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.405. ELECTION ON PRELIMINARY BONDS. (a) The

proposition for the issuance of preliminary bonds shall be

submitted to the electors of the district.

(b) The election may be held at the same time as the election to

confirm the creation of the district or at a later time.

(c) The board shall make an estimate of the expenses to be paid

with the proceeds of the preliminary bonds and shall include this

estimate in the notice of election.

Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.406. CONDITIONS OF PRELIMINARY BONDS. (a) After

preliminary bonds have been authorized at an election, the board

may order the issuance of the bonds in an amount which is not

more than the amount stated in the notice of election.

(b) The bonds may be paid serially or on amortization at any

time not more than 10 years from their date.

(c) Although the bonds will be known and designated in the

records as preliminary bonds, it is not necessary to make this

designation on the bonds.

Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.407. TAX TO PAY PRELIMINARY BONDS. At the time

preliminary bonds are issued, a tax shall be levied to pay

principal and interest as the bonds mature and to pay the cost of

assessing and collecting the taxes.

Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.408. ISSUANCE OF BONDS. (a) After a district is

created and has adopted plans for construction of a plant and

improvements, it may issue bonds to pay for constructing the

plant and improvements and to pay costs and charges incident to

the construction including the cost of necessary property and the

retirement of preliminary bonds.

(b) The maximum amount of bonds which may be issued may not be

more than the amount of the engineer's estimate plus the

additional amounts added by the board in the election order.

Acts 1971, 62nd Leg., p. 336, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.410. ENGINEER'S REPORT. (a) Before an election is held

to authorize the issuance of bonds, an engineer's report, which

includes the plans and improvements to be constructed together

with maps, plats, profiles, and data showing and explaining the

engineer's report, shall be filed in the office of the district

and shall be available for public inspection.

(b) The engineer's report shall contain a detailed estimate of

the cost of improvements, including the cost of any property to

be purchased, and an estimate of the time required to complete

the improvements to the degree to which they may provide service.

(c) The board shall consider the engineer's report and may make

changes in the report and note them in the minutes.

Acts 1971, 62nd Leg., p. 337, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.411. ELECTION ORDER. (a) After the engineer's report

is filed and approved, the board may order an election in the

district to authorize the issuance of the bonds.

(b) In the order, the board shall estimate the total amount of

money needed to cover the items listed in Section 51.409 of this

code.

(c) The election order shall state:

(1) the proposed maximum interest rate on the bonds;

(2) the maximum maturity date of the bonds;

(3) the time and places for holding the election; and

(4) the names of the election officers.

(d) The election order shall be entered in the minutes of the

board.

Acts 1971, 62nd Leg., p. 337, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.413. BALLOTS. (a) The proposition to be voted on shall

be the issuance of the total amount of bonds covered by the

engineer's estimate plus additional estimates made by the board.

(b) The ballots shall be printed to provide for voting for or

against: "The issuance of bonds and the levy of taxes to pay for

the bonds."

(c) If a contract is proposed with the United States under the

federal reclamation laws, the ballots shall be printed to provide

for voting for or against: "The contract with the United States

and the levy of a tax to pay the contract."

Acts 1971, 62nd Leg., p. 338, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.414. VOTE AT ELECTION. (a) Bonds of a district

operating under the provisions of Article III, Section 52, of the

Texas Constitution, may be issued only with the approval of

two-thirds of the electors of the district participating in the

election.

(b) In a district organized under the provisions of Article XVI,

Section 59, of the Texas Constitution, bonds may be issued or

indebtedness created only with the approval of a majority of the

electors of the district participating in the election.

Acts 1971, 62nd Leg., p. 338, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.415. ORDER TO ISSUE BONDS OR EXECUTE CONTRACT. After

the vote is canvassed and the results are declared to be

favorable to the proposition, the board shall make and enter an

order directing the issuance of the bonds or the execution of a

contract with the United States. The bonds or contract shall be

in a sufficient amount to pay for the improvements together with

all necessary incidental expenses, but the amount may not be more

than the amount specified in the election order and notice of

election.

Acts 1971, 62nd Leg., p. 338, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.419. CONDITIONS OF BONDS. (a) The bonds may be issued

to mature at the end of a term of years or to mature serially at

any date which is not later than the maximum maturity date stated

in the election order.

(b) The bonds may be issued at any rate of interest which is not

more than the rate of interest set in the election order.

Acts 1971, 62nd Leg., p. 339, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.420. FORM OF BONDS. (a) The bonds shall be issued in

the name of the district and shall be signed by the president and

attested by the secretary, with the seal of the district

attached.

(b) The bonds shall be issued in denominations of $100 or

multiples of $100 and shall be payable annually or semiannually.

(c) The board shall determine and include in the bonds the time,

place, manner, and condition of payment of principal and interest

on the bonds, but none of the bonds may be made payable more than

40 years from their date.

(d) The lien for payments due to the United States under a

contract that was not accompanied by a deposit of bonds with the

United States shall be a preferred lien to that of any issue of

bonds or any series of any issue of bonds subsequent to the date

of the contract.

Acts 1971, 62nd Leg., p. 339, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Subsec. (b) amended by Acts 1971, 62nd Leg., p. 1768, ch. 518,

Sec. 4, eff. May 31, 1971.

Sec. 51.423. VALIDATION SUIT. (a) A district may file a suit

to determine the validity of the creation of the district and the

bonds.

(b) If requested by the secretary of the interior, the district

shall file a suit to validate a contract made with the United

States.

(c) If a validation suit is filed, the bonds do not have to be

approved by the attorney general.

Acts 1971, 62nd Leg., p. 340, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.424. EFFECT OF PRIOR REGISTRATION. If bonds are

approved by the attorney general and registered by the

comptroller before a validation suit is filed, the filing of the

suit cancels the prior registration.

Acts 1971, 62nd Leg., p. 340, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.425. PROCEDURE IN VALIDATION SUIT. (a) A validation

suit shall be brought by the district in the district court of

any county in which all or part of the district is located or in

a district court in Travis County.

(b) The suit shall be in the nature of a proceeding in rem.

(c) Any person who is interested in the suit may intervene and

file an answer.

(d) The issue shall be tried and determined by the court and

judgment shall be entered on the findings.

(e) Repealed by Acts 1981, 67th Leg., p. 2646, ch. 707, Sec.

4(50), eff. Aug. 31, 1981.

Acts 1971, 62nd Leg., p. 340, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 2646, ch. 707, Sec. 4(50),

eff. Aug. 31, 1981.

Sec. 51.426. NOTICE OF VALIDATION SUIT. (a) To obtain

jurisdiction of all parties to the validation suit, a general

notice shall be published.

(b) The notice shall be published once a week for at least two

consecutive weeks before the term of the court at which the

notice is to be returned. The notice shall be published in a

newspaper with general circulation in the county or counties in

which the district is located, but if no newspaper is published

inside the district, the notice shall be published in a newspaper

in the nearest county in which a paper is published.

(c) Notice also shall be served on the attorney general in the

manner provided in civil suits.

(d) The attorney general may waive notice if he is furnished a

full transcript of the proceedings held in connection with the

creation of the district and the issuance of the bonds or held in

connection with the authorization of a contract with the United

States. A copy of the contract with the United States also must

be furnished.

Acts 1971, 62nd Leg., p. 341, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.427. DUTIES OF ATTORNEY GENERAL IN VALIDATION SUIT. (a)

The attorney general shall examine all the proceedings and shall

require any further evidence and make any further examination

which he considers advisable.

(b) The attorney general then shall file an answer to the suit,

submitting the issue of whether the proceedings are valid and the

bonds are legal and binding obligations of the district or

whether the contract with the United States is legal and binding

on the district.

Acts 1971, 62nd Leg., p. 341, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.428. JUDGMENT IN VALIDATION SUIT. (a) After the trial

of the validation suit, if the judgment of the court is adverse

to the district on any issue, the district may make an exception

and point out the error, and the error may be corrected by the

judge in the manner directed by the court.

(b) The judgment shall be rendered showing that the corrections

have been made and that the bonds or the contract with the United

States are binding obligations of the district.

(c) After the judgment is entered, it is res judicata in all

cases which may arise in connection with:

(1) the collection of the bonds or their interests;

(2) any taxes levied to pay charges or any money required to pay

a contract with the United States; and

(3) all matters relating to the organization and validity of the

district or the validity of the bonds or contract.

Acts 1971, 62nd Leg., p. 341, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.429. EFFECT OF VALIDATION SUIT. (a) After a final

judgment is rendered in the validation suit, the bonds or the

contract with the United States shall be incontestable.

(b) No suit may be brought in any court of this state to contest

or enjoin the validity of the creation of the district, any bonds

which are issued, any contract with the United States, or the

authorization of a contract with the United States except in the

name of the State of Texas by the attorney general on his own

motion or on the motion of any party affected on good cause

shown.

(c) The attorney general may not file or prosecute such a suit

unless it is based on allegations of fraud disclosed or found

after the final judgment in the validation suit was rendered.

Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.430. CERTIFIED COPY OF DECREE. (a) After the judgment

of the district court is entered, the clerk of the court shall

make a certified copy of the decree which shall be filed with the

comptroller. The comptroller shall record the decree in the book

kept for that purpose.

(b) The certified copy of the decree or a certified copy of the

comptroller's record of the decree shall be received in evidence

in any suit which may affect the validity of the organization of

the district or the validity of the bonds or the contract and

shall be conclusive evidence of validity.

Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.431. REGISTRATION OF BONDS AND DECREE. On the

presentation of the bonds together with a certified copy of the

decree of the court, the comptroller shall register the bonds in

a book kept for that purpose. The comptroller shall attach to

each bond a certificate stating that the court's decree has been

filed and recorded in his office and shall sign the certificate

and attach his official seal.

Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.432. SALE OF BONDS. (a) After the bonds are issued by

the district, the board shall sell the bonds on the best terms

and for the best price possible.

(b) The board shall pay the proceeds from the sale of the bonds

to the district depository.

(c) The district may exchange bonds for property acquired by

purchase or to pay the contract price of work done for the use

and benefit of the district.

Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.433. TAX LEVY. (a) At the time bonds are voted, the

board shall levy a tax on all property inside the district in a

sufficient amount to redeem and discharge the bonds at maturity.

(b) The board annually shall levy or have assessed and collected

taxes on all property inside the district in a sufficient amount

to pay for the expenses of assessing and collecting the taxes.

(c) If a contract is made with the United States, the board

annually shall levy taxes on property inside the district in a

sufficient amount to pay installments and interest as they become

due.

(d) The board may issue the bonds in serial form or payable in

installments, and the tax levy shall be sufficient if it provides

an amount sufficient to pay the interest on the bonds, the

proportionate amount of the principal of the next maturing bonds,

and the expenses of assessing and collecting the taxes for that

year.

Acts 1971, 62nd Leg., p. 342, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.436. INTEREST AND SINKING FUND. (a) The district shall

have an interest and sinking fund which shall include all taxes

collected under this chapter.

(b) Money in the interest and sinking fund may be used only:

(1) to pay principal and interest on the bonds;

(2) to defray the expenses of assessing and collecting the

taxes; and

(3) to pay principal and interest due under a contract with the

United States if bonds have not been deposited with the United

States.

(c) Money in the fund shall be paid out of the fund on warrants

by order of the board as provided in this chapter.

(d) The depository shall receive and cancel each interest coupon

and bond as it is paid and shall deliver it to the board to be

recorded, cancelled, and destroyed.

Acts 1971, 62nd Leg., p. 343, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.437. INVESTMENT OF SINKING FUND. (a) The board may

invest any portion of the sinking fund of the district in bonds

of the United States, the state, any county or city in the state,

any irrigation or water improvement district, school district, or

other tax bonds issued under the laws of the state.

(b) The funds may be invested if the bonds to be paid with them

do not mature within three years from the time the investment is

made and if it is necessary to preserve the best interest of the

district.

Acts 1971, 62nd Leg., p. 343, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.438. REFUNDING BONDS. (a) A district may issue bonds

to refund all or any part of its outstanding bonds, notes, or

other obligations including matured but unpaid interest coupons.

(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.

(c) Refunding bonds may be made payable from the same source as

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

other additional sources.

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

in the manner provided by law for other bonds of the district and

shall be registered by the comptroller on the surrender and

cancellation of the bonds being refunded.

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

refunding bonds may provide that the refunding bonds will 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. If refunding bonds are issued before cancellation of

the other bonds, an amount which, when added to the earnings and

profits from the investment of such amount, is sufficient to pay

the interest on and principal of 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, shall be deposited in the place or places at which the

bonds being refunded are payable.

(f) The comptroller shall register refunding bonds without the

surrender and cancellation of bonds being refunded.

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

installment deliveries.

(h) Refunding bonds are investment securities under Chapter 8,

Business & Commerce Code.

(i) In lieu of the method provided by this section, a district

may refund bonds, notes, or other obligations as provided by the

general law of the state.

Acts 1971, 62nd Leg., p. 344, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1985, 69th Leg., ch. 215, Sec. 1, eff. Sept. 1,

1985.

Sec. 51.439. LIMITATION OF AUTHORITY TO INCUR DEBT AND ISSUE

BONDS. (a) For the benefit of purchasers or holders of bonds to

be issued or sold, the board of a district operating under the

provisions of Article XVI, Section 59, of the Texas Constitution,

may limit the authority of the district to incur debt or issue

bonds.

(b) The board shall limit the authority by adopting a resolution

which states that during a period of not more than 15 years the

district will not issue bonds in an amount of more than 25

percent of the assessed value of taxable real property in the

district according to the last assessment for district purposes

or in an amount of more than a fixed sum or for certain named

purposes.

(c) The board shall publish notice of the adoption of the

resolution once a week for two consecutive weeks in a newspaper

with general circulation in the district. The notice shall state

that the resolution will take effect unless a petition against

the proposed limitation signed by 20 percent of the electors of

the district is presented within 20 days after the first

publication of the notice.

(d) If a petition is filed against the limitation, the

resolution will not take effect until it is approved at an

election held in the district.

(e) The ballots for the election shall be printed to provide for

voting for or against: "The limitation during the term of ______

years of the maximum debt of the district to ______." (The blank

spaces shall be filled with the purpose of the election.)

(f) If the limitation is approved at an election or if no

petition is filed against the resolution, the district may not

issue bonds under any statute or constitutional provision in

excess of the limitation during the designated term of years

except to complete and make repairs to improvements whose cost

will be within the debt limitation.

Acts 1971, 62nd Leg., p. 344, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.440. ISSUING BONDS IN EXCESS OF LIMITATION. (a) A

district may issue bonds in excess of a limitation made under

Section 51.439 of this code only after the commission has

approved the plans and specifications with the estimate of costs.

(b) If the plans, specifications, and estimate are approved,

notice of the intention to issue the bonds shall be published

once a week for three consecutive weeks in a newspaper with

general circulation in the district. The notice shall include a

statement of the purpose for issuing the bonds, the amount of the

proposed bond issue, and the time the hearing is to be held,

which may not be less than 30 days after the notice is first

published.

(c) The board shall hold the hearing and any taxpayer,

bondholder, or other interested person may appear and be heard.

(d) If the board approves the issuance of the additional bonds

in the amount and for the purpose stated in the notice, the

question of issuing the bonds shall be submitted to the electors

of the district at an election.

Acts 1971, 62nd Leg., p. 344, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.441. MODIFICATIONS OF IMPROVEMENTS. (a) After bonds

are issued or a contract is entered into with the United States,

the board may give notice of an election to be held to authorize

the issuance of additional bonds or a further contract with the

United States.

(b) Additional bonds may be issued or a supplemental contract

made if the board considers it necessary to:

(1) make modifications in the district or its improvements;

(2) construct further or additional improvements and issue

additional bonds on the report of the engineer;

(3) make a supplemental contract with the United States;

(4) make, on its own motion, additional improvements or purchase

additional property to accomplish the purposes of the district

and to serve the best interest of the district.

(c) The board shall enter its findings in the minutes.

(d) The election shall be held and the returns made in the

manner provided in this chapter for the original election.

(e) If the result of the election favors the issuance of the

bonds or the supplemental contract with the United States, the

board may order the bonds issued or the contract made with the

United States in the manner provided in this chapter.

(f) If a supplemental contract is made with the United States

and bonds are not to be deposited with the United States, it is

not necessary to issue bonds. If the district is required to

raise money in addition to the amount of the contract, the bonds

shall be issued only in the additional amount needed.

Acts 1971, 62nd Leg., p. 345, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.442. ISSUANCE OF ADDITIONAL BONDS OR CREATION OF

ADDITIONAL INDEBTEDNESS UNDER CERTAIN CONDITIONS. (a) A

district may issue additional bonds or create additional

indebtedness:

(1) if works, improvements, and facilities constructed under a

plan provided in Section 51.410 or 51.422 of this code are

inadequate to accomplish the beneficial results which the

district's location and conditions demand;

(2) if it is considered necessary to make repairs, replacements,

or additions to the district's improvements which cost more than

$25,000; or

(3) if additional money is needed to complete the improvements

as planned.

(b) The district shall provide the additional money for the

particular purpose in accordance with the provisions of this

chapter regulating the creation of bond obligations subject to

every limitation with respect to the original proceedings and the

substantial protection of the substantive rights of holders of

any of the district's outstanding obligations.

Acts 1971, 62nd Leg., p. 345, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.443. INTERIM BONDS. After bonds, other than preliminary

bonds or notes, are voted by a district, the board may declare an

existing emergency with relation to money being unavailable to

pay for engineering work, purchase of land, rights-of-way,

construction sites, construction work, and legal and other

necessary expenses and may issue interim bonds on the faith and

credit of the district in the manner provided in Sections

51.444-51.449 of this code to pay these expenses.

Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.444. LIMITATIONS ON INTERIM BONDS. (a) Interim bonds

shall mature not later than 10 years from the date they are

issued and shall be redeemable at any time before they mature, as

provided in this subchapter.

(b) The principal amount of the interim bonds may not be more

than 25 percent of the principal amount of the district's bonds

which have been voted but not sold.

(c) Before the issuance of the interim bonds, the board, by

resolution, may limit the issue to any amount less than 25

percent, and after the amount is determined and fixed by the

resolution, no additional interim bonds may be issued and sold

until all outstanding interim bonds are paid.

Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.445. ISSUANCE OF BONDS AND LEVY OF TAX. (a) After

bonds other than preliminary bonds are voted, the board may

authorize the issuance of the bonds in whole or in part as they

are needed by the district.

(b) The board shall levy and annually assess and collect

sufficient taxes to pay principal and interest on the bonds.

(c) The bonds may be approved by the attorney general and

registered by the comptroller before the filing of the report of

the commission under Section 51.421 of this code.

Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 981, ch. 367, Sec. 19, eff.

June 10, 1981.

Sec. 51.446. DEPOSIT OF BONDS TO SECURE INTERIM BONDS. (a) As

the interim bonds are issued and sold, the board, by order, shall

deposit bonds of the district which have been validated by a

court or approved by the attorney general and registered by the

comptroller as provided in Section 51.417 of this code in the

district depository.

(b) The bonds deposited shall be credited to the interest and

sinking fund account created to pay the interim bonds.

(c) The principal amount of the bonds deposited shall total at

least 110 percent of the principal sum of the series of interim

bonds which the bonds are deposited to secure.

(d) The interest rate on the interim bonds may not be more than

the interest rate on the bonds deposited to secure them.

Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.447. PROCEDURE FOR ISSUANCE AND SALE OF INTERIM BONDS.

(a) Interim bonds shall be issued in the name of the district,

signed by the president, and attested by the secretary, with the

district seal attached to each bond.

(b) The interim bonds may be issued in the denominations

determined by the board and shall be approved by the attorney

general and registered by the comptroller in the same manner as

provided in Section 51.417 of this code.

(c) Interim bonds may be sold in the same manner and on the same

terms provided by law for the sale of other bonds of the

district.

(d) If interim bonds are sold at less than par value and accrued

interest, the improvement bonds issued by the district must be

sold at an increase over the price authorized by law in an amount

sufficient to equal the discount allowed on the interim bonds.

Acts 1971, 62nd Leg., p. 346, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.448. PAYMENT OF INTERIM BONDS. (a) The board shall

appropriate the tax levied to pay the bonds deposited to the

credit of the interest and sinking fund to pay the interim bonds

or as much of that tax as necessary to secure the loan evidenced

by the interim bonds.

(b) The proceeds of the tax shall be devoted exclusively to the

payment of the principal and interest on the interim bonds.

(c) None of the provisions of this subchapter relating to

interim bonds shall be construed as prohibiting the sale of bonds

deposited to the credit of the interest and sinking fund to pay

interim bonds or of any other bonds of the district, but if any

of these bonds are sold, the district depository shall apply the

proceeds to the payment of principal and accrued interest on the

interim bonds and the remainder to the purposes for which the

bonds were authorized.

(d) If none of the bonds are sold at the time an installment on

the principal and interest of interim bonds matures, the

depository shall cancel the deposited bonds and attached interest

coupons in an amount equal to the principal and interest of the

interim bonds paid off and discharged.

Acts 1971, 62nd Leg., p. 347, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.449. REDEMPTION OF INTERIM BONDS. (a) At the option of

the board, interim bonds may be redeemed at any time or times

before maturity on payment by the district of the principal and

accrued interest to the date fixed for redemption by the board.

(b) When interim bonds are called for redemption before

maturity, the secretary shall give written notice of the

redemption to the bank or banking house named as the place of

payment in the bonds or to its successor or assign.

(c) In the notice, the secretary shall designate the bond or

bonds called for redemption and payment and shall state number or

numbers of the bonds.

(d) The notice shall include the redemption date which shall not

be more than 60 days after the date notice of call for payment is

made.

(e) If any of the bonds which are called for redemption are not

presented, they shall cease to bear interest from and after the

date fixed for redemption.

Acts 1971, 62nd Leg., p. 347, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.450. ALTERNATE METHODS FOR PAYING BONDS. (a) As used

in this section and in Sections 51.450-51.454 of this code, "net

revenue" means income or increment which may come from ownership

and operation of the improvements which are encumbered less the

proportion of the district's revenue income reasonably required

to provide for administration, efficient operation, and adequate

maintenance of the district's services and facilities which are

encumbered. Net revenue does not include money derived from

taxation.

(b) A district which expects net revenue from operations may

secure its bonds in any one of the following:

(1) as provided in Section 51.433 of this code;

(2) by entering into a contract to pledge the net revenue of the

district and to mortgage and encumber part or all of the property

and facilities, franchise, revenue and income from operations,

and everything acquired or to be acquired by the district; or

(3) as provided in both Subdivisions (1) and (2) of this

subsection.

Acts 1971, 62nd Leg., p. 347, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.451. TAXES TO SECURE CERTAIN BONDS. (a) If bonds are

secured as provided in Section 51.450(b)(3) of this code, at the

time that net revenue together with money derived from taxes

accumulates a surplus in the sinking fund equal to the amount

required in the succeeding year to liquidate the interest and

principal on the district's bonds maturing in that year, the

district's annual tax levies may be lowered to produce not less

than 25 percent of the bond maturities for the succeeding year.

(b) If three successive years demonstrate that this net revenue

is adequate to protect the district's bonds as they mature, the

district's tax may be discontinued until further experience

demonstrates the necessity to continue the tax to avoid default

in the payment of the district's bonds as they mature.

Acts 1971, 62nd Leg., p. 348, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.452. ELECTION. (a) If the district proposes to issue

bonds which will be secured under either Section 51.450(b)(2) or

51.450(b)(3) of this code, the proposition shall be presented at

an election held under Section 51.413 of this code.

(b) The ballots for the election shall be printed to provide for

voting for or against one of the following propositions:

(1) "The issuance of bonds and the pledge of net revenue for the

payment of the bonds.";

(2) "The issuance of bonds, the pledge of net revenue, and the

creation of a lien on physical property to secure payment of the

bonds."; or

(3) "The issuance of bonds, the pledge of net revenue, and the

levy of adequate taxes to pay the bonds."

Acts 1971, 62nd Leg., p. 348, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.453. HEARING AND ELECTION ON CERTAIN BONDS. (a) A

district which plans to issue bonds payable from and secured by a

pledge of net revenue and a lien on the physical property, either

or both, without the levy of taxes, is not required to hold a

hearing to exclude land or adopt a plan of taxation.

(b) The proposition for issuance of bonds may be submitted at

the election held to confirm the creation of the district or at

an election called by the board.

Acts 1971, 62nd Leg., p. 348, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.454. HEARING BEFORE ISSUING CERTAIN BONDS. If a

district issues its original bonds under Section 51.450(b)(2) of

this code and later desires to issue bonds payable in whole or in

part from taxes or to levy a tax for maintenance purposes, the

district shall hold a hearing to exclude land, and at the time

provided by law, shall hold another hearing to adopt a plan of

taxation. These hearings shall be held before an election is

called to approve the issuance of tax-supported bonds or the levy

of a maintenance tax.

Acts 1971, 62nd Leg., p. 349, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.455. ISSUANCE OF REVENUE BONDS TO CONSTRUCT EXTENSIONS

AND IMPROVEMENTS TO CERTAIN SYSTEMS. (a) A district which has

adopted a plan for improvements designed to furnish a water and

sewer system may also issue its revenue bonds as provided in

Section 51.450(b)(2) of this code to construct extensions and

improvements to the water and sewer system or to an irrigation

system.

(b) The district may pay the revenue bonds by entering into

contracts to pledge the net revenue derived from the sale of

water for irrigation purposes and service charges obtained from

the sale and distribution of water for irrigation purposes.

(c) The bonds may be issued in one or more issues under the

terms and conditions considered by the board to be advisable.

Acts 1971, 62nd Leg., p. 349, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER L. TAX PLAN

Sec. 51.501. TAX TO PAY PRELIMINARY BONDS. Taxes to pay

principal and interest on preliminary bonds shall be levied and

collected on the ad valorem basis.

Acts 1971, 62nd Leg., p. 349, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.502. HEARING TO DETERMINE BASIS OF TAXATION. After the

board adopts plans for construction of a plant and improvements

to accomplish the purposes of the district and after an election

is held to authorize the issuance of construction bonds and the

levy of a tax to pay for the bonds, the board shall hold a public

hearing to determine whether the taxes to pay the construction

bonds and maintenance, operation, and administrative costs of the

district shall be levied, assessed, and collected on:

(1) the ad valorem basis;

(2) the basis of assessment of specific benefits;

(3) the basis of assessment of benefits on an equal sum per

acre; or

(4) the ad valorem basis for part of the total tax or defined

area or property and on the benefit basis for the other part of

the tax or defined area or property.

Acts 1971, 62nd Leg., p. 349, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.503. NOTICE OF HEARING. Notice of the time and place of

the hearing and the proposition to be determined shall be

published once a week for two consecutive weeks in one or more

newspapers with general circulation in the district. The first

publication shall be made not less than 10 days before the day of

the hearing set in the notice.

Acts 1971, 62nd Leg., p. 349, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.504. CONDUCT OF HEARING. (a) At the hearing, any

person who is a taxpayer in the district may appear and offer

testimony to show which plan of taxation will be most conducive

to equitable distribution of taxes.

(b) The hearing may be adjourned from day to day until all

persons wishing to testify have been heard.

Acts 1971, 62nd Leg., p. 350, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.505. ORDER. (a) The board shall adopt the plan of

taxation which will, in its judgment under the evidence, be most

conducive to the equitable distribution of the district's tax.

(b) If the plan adopted by the board is made under the

provisions of Section 51.512 of this code, the order shall

specify the proportion of the tax which falls under each

designated classification.

(c) The order of the board is final and cannot be reviewed or

questioned in any court except on the ground of fraud or palpable

and arbitrary abuse of discretion.

Acts 1971, 62nd Leg., p. 350, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.506. CHANGE TAX PLAN. If after a tax plan is adopted

the directors find that the best interest of the district and the

necessity to maintain adequately and equitably the district's tax

requires a change in the tax plan, the board may give notice,

hold a hearing, and determine a new plan in the manner provided

in Sections 51.502-51.505 of this code.

Acts 1971, 62nd Leg., p. 350, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.507. EFFECT OF SECTIONS 51.501-51.506 OF CODE. Nothing

in Sections 51.501-51.506 of this code shall be held to alter

provisions of this chapter relating to districts which have

contracts with the United States or to alter or impair the

provisions of this code relating to taxes levied to provide local

improvements to a defined area which do not affect the entire

district.

Acts 1971, 62nd Leg., p. 350, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.508. UNLIMITED AUTHORITY TO COLLECT SERVICE CHARGES AND

TAXES. The provisions of this subchapter do not alter or impair

the right of a district to make, establish, and collect

maintenance and operation charges for service rendered; to levy

and collect taxes to secure funds to maintain, repair, and

operate all works and facilities; and to give and maintain proper

service for the purposes of its organization.

Acts 1971, 62nd Leg., p. 350, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.509. LIEN CREATED; NO LIMITATION. Charges or

assessments imposed by a district for maintenance and operation

of works, facilities, and services of the district shall

constitute a lien against the land to which the charges or

assessments have been established. No law providing limitation

against actions for debt shall apply.

Acts 1971, 62nd Leg., p. 351, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.510. PURPOSE OF SECTIONS 51.511-51.530 OF CODE. The

purpose of Sections 51.511-51.530 of this code is to give a

district the flexibility of taxing power which will permit and

cause the tax of the district to be equitably distributed and

which will give the highest practicable degree of service under

the peculiar physical and economic conditions of the district. To

this end, these sections shall be liberally and sympathetically

construed.

Acts 1971, 62nd Leg., p. 351, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.511. AUTHORITY TO ADOPT ALTERNATIVE PLANS OF TAXATION.

A district operating under the provisions of Article XVI, Section

59, of the Texas Constitution, shall adopt a tax plan under the

alternative provisions of Sections 51.512-51.530 of this code

either at the time of its creation or before the appointment of

commissioners of appraisement under this chapter.

Acts 1971, 62nd Leg., p. 351, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.512. ALTERNATIVE PLANS OF TAXATION. (a) The district's

taxes for all purposes, except to pay the cost of preliminary

surveys, may be levied, assessed, and collected on an adopted

basis to be chosen from the alternatives provided in this

section.

(b) The district's tax plan may be based on any one of the

following:

(1) ad valorem basis;

(2) benefit basis;

(3) ad valorem basis to obtain a part or percentage of the total

tax or to apply to a specific part of the district and benefit

basis applied to the other part of percentage of the tax or to

the remaining part of the district; or

(4) either ad valorem or benefit basis on designated property or

defined areas of the district to pay for improvements,

facilities, or service peculiar to the defined part of the

district and not generally and directly benefiting the district

as a whole.

Acts 1971, 62nd Leg., p. 351, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.513. ADOPTION OF PLAN OF TAXATION. (a) Except as

provided in Section 51.512(b)(4) of this code, before the

commission of appraisement is appointed and the construction

bonds are sold, the board shall adopt a proposed plan of taxation

as provided in Sections 51.502-51.505 of this code.

(b) If the tax plan is not based wholly on the ad valorem basis

or on the benefit basis, the order adopting the proposed plan

shall specify the portion of the tax to be based on the ad

valorem basis and the portion to be based on the benefit basis.

The board also shall state the physical and economic reasons, the

peculiar diverse local needs, or the comparative potential

benefits of different areas of designated property in the

district which make it necessary or equitable to levy all or part

of the tax on a defined part of the district on the ad valorem or

benefit basis.

Acts 1971, 62nd Leg., p. 351, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.514. NOTICE OF ADOPTION OF PLAN AND HEARING. (a) After

the tax plan is adopted, the board shall publish notice once a

week for two consecutive weeks in one or more newspapers with

general circulation in the county or counties in which the

district is located.

(b) The notice shall state:

(1) that the tax plan has been adopted;

(2) that the plan is available for public inspection in the

district's office;

(3) that a hearing on the plan will be held by the board at a

specified place and at a particular time, which shall not be less

than 15 days nor more than 20 days after the first publication of

notice; and

(4) that all interested persons may appear and support or oppose

all or part of the proposed tax plan and offer testimony.

Acts 1971, 62nd Leg., p. 352, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.515. ORDER ADOPTING TAX PLAN. (a) After all persons

have been heard, the board may approve the proposed tax plan or

may change or modify the plan.

(b) The board shall adopt a tax plan which it considers, under

the evidence before it, most equitably distributes the tax burden

and conserves the public welfare.

(c) The board shall enter its order establishing the tax plan,

and the plan shall become the basis for the assessment and

collection of taxes until the district adopts a different plan.

(d) The order is not subject to judicial review except on the

ground of fraud, palpable error, or arbitrary and confiscatory

abuse of discretion.

(e) A new plan may be adopted if required to preserve equity of

distribution in the manner provided for adopting the original

plan; however, no change may be made in the tax plan which will

impair the ability of the district promptly to meet all

outstanding obligations of the district within the intent of

Sections 51.434 and 51.437 of this code.

Acts 1971, 62nd Leg., p. 352, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.516. OBTAINING FUNDS TO CONSTRUCT, ADMINISTER, MAINTAIN,

AND OPERATE IMPROVEMENTS AND FACILITIES IN DEFINED PART OF

DISTRICT. On adoption of the plan of taxation provided in

Section 51.512(b)(4) of this code, the district, under the

limitations of this subchapter, may apply separately,

differentially, equitably, and specifically its taxing power and

lien to a defined area or designated property to provide money to

construct, administer, maintain, and operate improvements and

facilities peculiar to the defined area or the designated

property.

Acts 1971, 62nd Leg., p. 352, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.517. ADOPTION OF TAX PLAN FOR ONLY PART OF DISTRICT. If

a district adopts the tax plan and assumes the powers in Section

51.512(b)(4) of this code, or if required to conserve and protect

the public welfare, the district, in the manner provided in

Sections 51.518-51.524 of this code, may provide, pay for,

maintain, and operate improvements, service, or facilities

peculiar to a designated area or defined property which do not

affect the whole district.

Acts 1971, 62nd Leg., p. 352, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.518. DEFINING AREA AND DESIGNATING PROPERTY TO BE

BENEFITED BY IMPROVEMENTS; ADOPTING TAX PLAN. (a) The board

shall define the particular area to be taxed by metes and bounds

or designate the property to be served, affected, and taxed.

(b) The board shall adopt a plan for improvements in the defined

area or to serve the designated property in the manner provided

in Sections 51.410-51.411 of this code.

(c) The board shall adopt a plan of taxation to apply to the

defined area or designated property which may or may not be in

addition to other taxes imposed by the district on the same area

or property. The proportional tax or income contributions of the

defined area or designated property and the proportional and

equitable interest of the entire district shall be taken into

consideration in imposing any tax to an area or piece of

property.

Acts 1971, 62nd Leg., p. 353, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.519. NOTICE AND HEARING. The board shall give notice

and hold a hearing in the same manner and for the same purpose as

provided in Sections 51.514-51.515 of this code.

Acts 1971, 62nd Leg., p. 353, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.520. BOARD'S ORDER. At the hearing, if the board

decides to define and serve the proposed separate tax area or

separate designated property, it shall enter an order in the

record, and if the proposal involves the issuance of bonds, the

board shall call an election in the whole district.

Acts 1971, 62nd Leg., p. 353, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.521. PROCEDURE FOR ELECTION. (a) The election shall

conform to the provisions of this code relating to an election to

authorize the issuance of construction bonds.

(b) The board shall submit the appropriate issues to the

electors, and the issues may be submitted on the same ballot to

be used in another election.

(c) The notice of election shall define the area to be

designated and the plan of taxation to be applied.

Acts 1971, 62nd Leg., p. 353, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.522. ELECTION NOT REQUIRED IN SEPARATE ELECTION

PRECINCT. If proposed improvements are considered to be required

to promote the public welfare or if the owners of the land in a

defined area file a petition acknowledged as required for deeds

requesting the district to provide improvements and assess a tax

only in the defined area, it is not necessary to constitute the

area a separate election precinct and have a separate election in

that area.

Acts 1971, 62nd Leg., p. 353, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.523. BALLOTS. The ballot for an election under this

subchapter shall be printed to provide for voting for or against

substantially the proposition: "Designation of the area, issuance

of bonds, and levy of a tax to retire the bonds."

Acts 1971, 62nd Leg., p. 353, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.524. DECLARING RESULT AND ISSUING ORDER. If a majority

of the electors approve the proposal, the board shall declare the

result and, by order, shall establish the area and define it by

metes and bounds or designate the specific property and shall fix

the tax basis for the area or property. A certified copy of the

order shall be recorded in the minutes of the district and shall

constitute notice.

Acts 1971, 62nd Leg., p. 354, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.525. PLEDGE OF FAITH AND CREDIT. If at an election the

electors approve the issuance of bonds and the levy of a tax

which applies only to a defined area, the district may issue

bonds which pledge only the faith and credit based on the

property values in the defined area; however, the district may

pledge the full faith and credit of the entire district under the

condition of authorization in Section 51.529 of this code.

Acts 1971, 62nd Leg., p. 354, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.526. ELECTION IN SEPARATE ELECTION PRECINCT. (a) If

the improvements to be provided in a defined area are considered

peculiarly for the benefit of that area and not required to

conserve the public or general welfare in the district as a

whole, and if the proposed improvements in that area will require

the imposition of a tax only on the property in the area, the

defined area is constituted a separate election precinct in which

a separate election shall be held to determine if the

improvements will be provided and a separate tax levied.

(b) The election shall be held in the manner provided for

issuance of bonds under this subchapter.

(c) If a majority of the electors in the defined area approve

the propositions, the district shall provide money when necessary

and shall provide the improvements and levy the tax.

(d) At an election in the defined area, each qualified elector

of the district who owns property in the defined area may elect

to vote in the area and not in the precinct of his residence.

Acts 1971, 62nd Leg., p. 354, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.527. ISSUANCE OF BONDS AND LEVY OF TAX FOR DEFINED AREA

OR DESIGNATED PROPERTY. (a) After the order is recorded, the

district may issue its bonds to provide the specific plant,

works, and facilities included in the plans adopted for the area

or to serve the property and shall provide the plant, works, and

facilities.

(b) In the appropriate case, the board shall levy, assess, and

collect taxes on the property located in the defined area or on

the designated property in conformity with the adopted tax plan.

Acts 1971, 62nd Leg., p. 354, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.528. CONTRACT TO PROVIDE IMPROVEMENTS, FACILITIES, AND

SERVICES TO DESIGNATED PROPERTY OR AREA. (a) Property or areas

inside or outside the district may, by contract, be designated to

obtain improvements, facilities, or service for the designated

area or property.

(b) The designation shall be based on a written petition in

conformity with the laws authorizing contracts by a petitioner or

person owning, controlling, or governing the property or area to

be designated.

(c) The board may make the designation in a contract to provide,

administer, maintain, and operate the desired improvements,

facilities, or service for the designated area or property, and

the designated area or property shall be subject to being made

the basis of the bonds and may be subject to a tax lien in amount

to retire the obligations incurred by the district to provide the

facilities, improvements, or service and to cover the expenses

necessary to administer, maintain, and operate the improvements

and facilities under the contract.

(d) The contract may not violate the law of this state or the

United States and may not result in impairing a vested right or

causing the district to fail to serve fully and permanently water

demands in the district in the order of preference of uses.

(e) The contract may provide that one governing body may

establish the contractual and statutory tax lien in behalf of the

district and may levy, assess and collect the tax for and on

behalf of the district.

(f) The district may not issue bonds pledging the full faith and

credit of the district under this section or under Section 51.517

of this code without submitting the proposition to the electors

of the whole district under the provisions of this subchapter or

under the provisions authorizing the issuance of construction

bonds.

Acts 1971, 62nd Leg., p. 354, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.529. AUTHORITY OF DISTRICT. (a) If a majority of the

electors in the whole district approve the proposal, the district

may issue its bonds to provide the plant, improvements, and

facilities peculiar to the defined area or designated property or

peculiar to a contract for service and may pledge the full faith

and credit of the district to pay for the bonds.

(b) The district shall have a lien on the property in the

defined area or on the designated property and may levy, assess,

and collect or have levied, assessed, and collected taxes in the

area or on the property to protect the district from or to

compensate any liability incurred on behalf of the defined area

or designated property.

Acts 1971, 62nd Leg., p. 355, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.530. ADMINISTRATIVE AUTHORITY OF BOARD. The board shall

administer all business incident to the creation and operation of

a defined area or service to designated property unless otherwise

provided by contract.

Acts 1971, 62nd Leg., p. 355, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.531. MASTER DISTRICT; TAXING AUTHORITY. A master

district may levy and collect taxes, equitably distributed, which

shall be in addition to other taxes which may be levied by the

several districts constituting the master district.

Acts 1971, 62nd Leg., p. 355, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.532. TAXES IN DISTRICTS CONSISTING OF A CITY, TOWN OR

MUNICIPAL CORPORATION. If a city, town, or municipal corporation

is constituted a district operating under this chapter, taxes

levied in the district may be assessed and collected in the

manner provided in Sections 51.533-51.538 of this code.

Acts 1971, 62nd Leg., p. 355, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.533. ORDER FIXING RATE OF TAXATION. (a) The board

shall issue an order fixing the rate of taxation and levying a

tax. The order shall be signed by the president and secretary of

the district, and the district seal shall be attached.

(b) The board shall enter the order in their minutes and file a

copy of the order with the secretary of the city, town, or

municipal corporation.

(c) The secretary of the city, town, or municipal corporation

shall record the order in a book kept in his office for that

purpose and shall make and deliver a copy of the order to the

assessor and collector of the city, town, or municipal

corporation.

Acts 1971, 62nd Leg., p. 356, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.534. ADDITION OF LAND TO DEFINED AREA. The procedures

of Section 49.301 may be used to add land to a defined area

created under this subchapter. The land must be included in the

district but is not required to be contiguous to the defined

area. Notwithstanding any law to the contrary, the procedures of

Section 49.301 shall apply to districts operating under Chapter

49.

Added by Acts 1997, 75th Leg., ch. 1010 Sec. 4.46, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 230, Sec. 1, eff. Aug.

30, 1999.

Sec. 51.535. PROVISIONS OF CHAPTER INAPPLICABLE TO DISTRICT. If

taxes are levied, assessed, and collected under Sections

51.533-51.538 of this code, the provisions of this chapter

relating to assessment and collection of taxes do not apply to

the district and it is not necessary for the district to appoint

an assessor and collector.

Acts 1971, 62nd Leg., p. 356, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.536. COMPENSATION OF CITY ASSESSOR AND COLLECTOR. The

board shall pay to the city assessor and collector and other city

officers reasonable compensation for the services performed by

them for the district. The amount of compensation shall be fixed

in advance of the performance of the duties.

Acts 1971, 62nd Leg., p. 356, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.537. MUNICIPALITY'S AUTHORITY REGARDING DEFINED AREA.

(a) This section applies only to a municipality any portion of

which is located in a county with a population of more than

800,000 and less than 1.3 million.

(b) A municipality may not annex a part of a defined area in a

district that has adopted a plan for the defined area under this

subchapter unless:

(1) 90 percent or more of all facilities and infrastructure

described by the plan has been installed and completed; and

(2) the municipality:

(A) annexes all of the defined area that is within the

municipality's extraterritorial jurisdiction; and

(B) assumes the pro rata share of the bonded indebtedness of the

annexed area.

(c) After the annexation occurs:

(1) the annexed area is not eligible to be a defined area under

this subchapter; and

(2) the district may not impose in the annexed area a tax

authorized for a defined area under this subchapter.

Added by Acts 2005, 79th Leg., Ch.

962, Sec. 3, eff. June 18, 2005.

Sec. 51.538. ELECTION REQUIRED. Taxes levied, bonds issued, and

indebtedness incurred by a district operating under Sections

51.533-51.538 of this code are subject to the provisions of the

constitution and this chapter which require an election to

authorize tax levies, bonds, and indebtedness.

Acts 1971, 62nd Leg., p. 356, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER M. TAXATION ON THE AD VALOREM BASIS

Sec. 51.561. ASSESSMENT AND COLLECTION OF DISTRICT TAXES. The

assessor and collector shall assess and collect taxes for the

district.

Acts 1971, 62nd Leg., p. 357, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.591. ATTORNEY TO FILE SUITS TO COLLECT DELINQUENT TAXES.

(a) The board shall on or before April 1 of each year employ an

attorney to file suits to collect all delinquent taxes.

(b) The attorney is entitled to receive a fee of 10 percent of

the amount of all delinquent taxes collected or paid after suits

are filed. The fees shall be charged as court costs.

Acts 1971, 62nd Leg., p. 362, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER N. TAXATION ON THE BENEFIT BASIS

Sec. 51.631. METHOD OF TAXATION FOR DISTRICT UNDER CONTRACT WITH

UNITED STATES. A district which is operated under contract with

the United States may adopt the plan to levy and collect taxes on

the benefit basis instead of the ad valorem basis and determine

taxes under the provisions of Sections 51.632-51.634 of this

code.

Acts 1971, 62nd Leg., p. 364, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.632. ASSESSMENT RECORD. When necessary, the board shall

apportion and assess the benefits conferred on property in the

district and shall make a record showing the amount and value of

benefits to accrue on property in the district and the amount of

taxes to be levied and collected on the property. No taxes

assessed or adjudged against the property may be more than the

benefit which accrues to the property from the organization,

operation, and maintenance of the district and its improvements.

Acts 1971, 62nd Leg., p. 364, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.633. NOTICE OF TAXES. After the board makes the record,

it shall mail to each property owner whose name appears in the

record notice of the amount of taxes levied on his property and

the date and place at which the property owner may appear and

contest the correctness and equitableness of the tax.

Acts 1971, 62nd Leg., p. 364, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.634. DECISION AFTER HEARING. After the hearing, the

board shall determine whether or not the tax is equitable and

shall sustain, reduce, or increase the tax to an amount which in

the board's judgment is equitable. The decision of the board is

final.

Acts 1971, 62nd Leg., p. 365, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.635. METHOD OF TAXATION FOR DISTRICT NOT UNDER CONTRACT

WITH THE UNITED STATES. If a district which is not operating

under contract with the United States adopts the benefit basis

plan for taxation, the levy, assessment, equalization of property

values, and collection of taxes shall be made in the manner

provided in Sections 51.636-51.648 of this code.

Acts 1971, 62nd Leg., p. 365, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.636. COMMISSIONERS OF APPRAISEMENT. As soon as

practicable after the approval of the engineer's report and the

adoption of the plan for improvements to be constructed, the

board shall appoint three disinterested commissioners of

appraisement. The commissioners shall be freeholders but not

owners of land within the district which they represent.

Acts 1971, 62nd Leg., p. 365, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.637. COMPENSATION OF COMMISSIONERS. On approval by the

board, each commissioner is entitled to receive $10 a day for

each day he actually serves, plus all necessary expenses.

Acts 1971, 62nd Leg., p. 365, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.638. NOTICE OF APPOINTMENT AND MEETING. Immediately

after the commissioners of appraisement are appointed, the

secretary of the board shall give written notice to each

appointee of his appointment and of the time and place of the

first meeting of the commissioners.

Acts 1971, 62nd Leg., p. 365, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.639. FIRST MEETING OF COMMISSIONERS. (a) The

commissioners shall meet at the time specified in the notice from

the secretary or as soon after that time as possible.

(b) At the meeting the commissioners shall take and subscribe an

oath to discharge faithfully and impartially their duties as

commissioners and make a true report of the work which they

perform. They shall then organize by electing one commissioner as

chairman and one commissioner as vice chairman.

(c) The secretary of the board or, in his absence, a person

appointed by the board shall serve as secretary to the

commissioners of appraisement and shall furnish to the

commissioners any information and assistance which is necessary

for the commissioners to perform their duties.

Acts 1971, 62nd Leg., p. 365, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.640. ASSISTANCE FOR COMMISSIONERS. Within 30 days after

the commissioners qualify and organize, they shall begin to

perform their duties, and in the exercise of their duties they

may obtain legal advice and information relative to their duties

from the district's attorney and, if necessary, may require the

presence of the district engineer or one of his assistants at any

time and for as long as necessary to properly perform their

duties.

Acts 1971, 62nd Leg., p. 365, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.641. VIEWING LAND AND OTHER PROPERTY AND IMPROVEMENTS IN

DISTRICT. The commissioners shall view the land in the district

which will be affected by the district's reclamation plans and

the public roads, railroads, rights-of-way, and other property

and improvements located in the district and shall assess the

amount of the benefits and damages that will accrue to the land,

roads, railroads, rights-of-way or other property or improvements

in the district from the construction of the improvements.

Acts 1971, 62nd Leg., p. 366, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.642. COMMISSIONERS REPORT. (a) The commissioners shall

prepare a report and file it with the secretary of the board. The

report shall be signed by at least a majority of the

commissioners.

(b) The report shall include:

(1) the name of the owner of each tract of land which is subject

to assessment;

(2) a description of the property;

(3) the amount of the benefits or damages assessed on each tract

of land;

(4) the time and place at which a hearing will be held on the

report to hear objections; and

(5) the number of days each commissioner served and the actual

expenses incurred during his service as commissioner.

(c) The day set in the report for the hearing may not be later

than 20 days after the report is filed.

Acts 1971, 62nd Leg., p. 366, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.643. NOTICE OF HEARING. (a) After the commissioners'

report is filed, the secretary of the board shall publish notice

of the hearing on the report at least once a week for two

consecutive weeks in a newspaper published in each county in

which part of the district is located. The secretary shall mail

written notice of the hearing to each person whose property will

be affected if his address is known.

(b) The notice shall state:

(1) the time and place of the hearing;

(2) that the commissioners' report has been filed;

(3) that interested persons may examine the report and make

objections to it; and

(4) that the commissioners will meet at the time and place

indicated to hear and act on objections to the report.

(c) On the day of the hearing, the secretary shall file in his

office the original notice and his affidavit stating the manner

of publication, the names of persons to whom notice was mailed,

and the names of persons to whom notice was not mailed because

the secretary by reasonable diligence could not ascertain their

addresses. Copies of the notice and affidavit also shall be filed

with the commissioners of appraisement and the clerk of the

commissioners court.

Acts 1971, 62nd Leg., p. 366, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.644. HEARING. (a) At or before the hearing on the

commissioners' report, an owner of land that is affected by the

report or the reclamation plans may file exceptions to all or

part of the report.

(b) At the hearing, the commissioners shall hear and make

determinations on the objections submitted and may make necessary

changes and modifications in the report for objections which are

sustained.

Acts 1971, 62nd Leg., p. 367, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.645. WITNESSES AT THE HEARING. At the hearing,

interested parties may appear in person or by attorney and are

entitled, on demand, to have the chairman of the commissioners of

appraisement issue process for witnesses. The commissioners shall

have the same power as a court of record to enforce the

attendance of witnesses.

Acts 1971, 62nd Leg., p. 367, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.646. COSTS OF HEARING. The commissioners may adjudge

and apportion the costs of the hearing in any manner they

consider equitable.

Acts 1971, 62nd Leg., p. 367, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.647. COMMISSIONERS' DECREE. (a) After the

commissioners have made a final decision, they shall issue a

decree confirming their report insofar as it remains unchanged

and shall approve and confirm changes in the report.

(b) The final decree and judgment of the commissioners shall be

entered in the minutes of the board, and certified copies shall

be filed with the county clerk of each county in which part of

the district is located and shall be notice to all persons of the

contents and purpose of the decree.

(c) The findings of the commissioners which relate to benefits

and damages to land and other property in the district are final

and conclusive.

Acts 1971, 62nd Leg., p. 367, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1989, 71st Leg., ch. 1248, Sec. 69, eff. Sept. 1,

1989.

Sec. 51.648. EFFECT OF FINAL JUDGMENT AND DECREE. The final

judgment and decree of the commissioners shall form the basis for

all taxation in the district. Taxes shall be apportioned and

levied on each tract of land and other real property in the

district in proportion to the net benefits to the land or other

property stated in the final judgment and decree.

Acts 1971, 62nd Leg., p. 367, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.649. FIXING TAX AS EQUAL SUM ON EACH ACRE. At the

election at which the plan of taxation is determined or at any

other time before the bonds are issued, the voters of any

district operating under the provisions of Article XVI, Section

59, of the Texas Constitution, may vote on the proposition of

whether or not benefits for tax purposes shall be fixed as an

equal sum on each acre of land that is irrigated or to be

irrigated by gravity flow from the canal system of the district.

The benefit per acre shall be voted on as it is applied to land

in the district that can be irrigated by gravity flow from the

irrigation system and also the benefit to land in the district

that cannot be irrigated by gravity flow.

Acts 1971, 62nd Leg., p. 367, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.650. ELECTION. (a) If the board desires to submit the

question of whether or not to adopt the method of assessing

benefits provided in Section 51.649 of this code, it shall order

an election to be held in the district and shall submit the

proposition in the manner provided for other district elections.

(b) The ballots for the election shall be printed to provide for

voting for or against the proposition: "Uniform assessment of

benefits of $______ per acre on all irrigable land in the

district, and the assessment of $______ per acre on all

nonirrigable land in the district."

(c) The board shall determine the amounts to fill the spaces in

the proposition. The amount of charge per acre may be found by

dividing the number of acres of land into the amount of debt to

be incurred by the district in providing for irrigation.

(d) If a majority of the persons voting in the election vote in

favor of the proposition, it shall be adopted.

Acts 1971, 62nd Leg., p. 368, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.651. EXCLUDING NONIRRIGABLE LAND FROM DISTRICT. If the

owner of land which is classed nonirrigable under the uniform

acreage valuation objects to the amount of charges fixed against

him by the order calling the election or by the result of the

election, he may have his nonirrigable land excluded from the

district by filing an application for exclusion as provided by

law within 10 days after the election is held.

Acts 1971, 62nd Leg., p. 368, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.652. SETTING ANNUAL VALUE OF LAND UNNECESSARY. If the

district adopts the uniform acreage valuation for taxation, the

valuation shall be applied to all land in the district, and it is

not necessary to annually fix the value of the land. It is also

unnecessary for the board to appoint a commission to ascertain or

fix the value of the improvement to particular land.

Acts 1971, 62nd Leg., p. 368, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.653. PREPARING TAX ROLLS. (a) The board shall examine

the tax rolls to determine if all property subject to taxation

appears on the tax rolls under the proper classification. The

board shall add to the tax roll any property which was left off

and shall examine, correct, and certify the tax roll.

(b) Any property owner may protest to the board that his

property has not been properly classified. The board shall

consider the protest and enter its findings in the minutes.

Acts 1971, 62nd Leg., p. 368, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.655. LAW GOVERNING ADMINISTRATION OF BENEFIT TAX PLAN.

In a district that levies taxes on a benefit basis, the rate of

taxation and the assessment and collection of taxes shall be

governed by the law relating to ad valorem taxes to the extent

applicable.

Acts 1971, 62nd Leg., p. 369, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.656. IRRIGATING NONIRRIGABLE LAND. If land which is

classed as nonirrigable is later irrigated by the district,

before the owner of the land receives the water, he shall pay to

the district an amount equal to the entire amount that would have

been charged to the owner if the land had been originally classed

as irrigable.

Acts 1971, 62nd Leg., p. 369, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.657. TAXATION IN DISTRICT CONSTRUCTING LEVEES OR

DRAINAGE SYSTEMS. (a) A district created to construct levees or

works and plants to protect from overflow or created to construct

drainage systems may adopt the plan of assessing benefits at an

equal sum on each acre of land in the district in the manner

provided in Sections 51.650-51.656 of this code.

(b) The proposition included in the election order shall be

printed to provide for voting for or against: "Uniform assessment

of benefits for ____________ purposes."

Acts 1971, 62nd Leg., p. 369, ch. 58, Sec. 1, eff. Aug. 30, 1971.

SUBCHAPTER O. ADDING AND EXCLUDING TERRITORY AND CONSOLIDATING

DISTRICTS

Sec. 51.702. EXCLUSION OF NONAGRICULTURAL AND NONIRRIGABLE LAND

FROM THE DISTRICT. After the district is organized, acquires

facilities with which to function as an irrigation district, and

votes, issues, and sells bonds for the purposes for which the

district was organized, land within the district subject to

taxation which is not agricultural land or cannot be irrigated in

a practicable manner may be excluded from the district by

complying with the provisions of Sections 51.703-51.713 of this

code.

Acts 1971, 62nd Leg., p. 371, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.703. PREREQUISITE TO APPLICATION FOR EXCLUSION. The

owner of land in the district which is not agricultural land or

cannot be irrigated in a practicable manner may apply for its

exclusion from the district if all taxes levied and assessed by

the district on the land to be excluded have been fully paid,

including all bond tax and flat water rate assessment.

Acts 1971, 62nd Leg., p. 371, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.704. SUBSTITUTING LAND OF EQUAL ACREAGE AND VALUE. Land

which can be irrigated in a practicable manner of at least equal

acreage and equal value to the land being excluded must be added

to the district simultaneously with the exclusion of the

nonagricultural or nonirrigable land.

Acts 1971, 62nd Leg., p. 372, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.705. SECURING APPLICATION TO SUBSTITUTE LAND. The board

may require an owner of land in the district who has applied for

the exclusion of his nonagricultural or nonirrigable land from

the district to procure an application of the owner of land

adjoining the boundaries or the canals of the district, and

capable of being irrigated in a practicable manner from the

facilities of the district, for inclusion in the district of his

land in an amount and value at least equal to the land which is

to be excluded under the application of the owner of

nonagricultural or nonirrigable land. Each application shall set

forth the facts concerning the land to be excluded from and the

land to be added to the district, including evidence of their

reasonable market value.

Acts 1971, 62nd Leg., p. 372, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.706. APPLICATION OF OWNER OF NEW LAND TO BE SUBSTITUTED.

The owner of the new land to be added shall submit an

application setting forth that the owner of the new land assumes

the payment of all taxes to be levied on his land by the district

after the date the land is added to the district. The application

also shall set forth an agreement by the owner of the new land

that the land will be subject to future taxes for bond tax and

flat rate and all other assessments levied and assessed by the

district as though the land had been incorporated originally in

the district. The application also shall contain an agreement by

the owner of the new land that the land will be subject to the

same liens and provisions as all other land in the district and

subject to the statutes governing all other land in the district.

Acts 1971, 62nd Leg., p. 372, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.707. CONSENT OF OUTSTANDING BONDHOLDERS. (a) The board

shall communicate the contents of the applications to exclude

nonagricultural or nonirrigable land and to include an equal

amount of irrigable land to the holders of outstanding bonds

voted, issued, sold, and delivered by the district and payable

from taxes levied on property in the district.

(b) If the consent in writing of 95 percent or more of the

bondholders to the plan is filed with the board, the board may

hold a hearing on the applications.

Acts 1971, 62nd Leg., p. 372, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.708. NOTICE OF HEARING ON APPLICATIONS. The board shall

give notice of the hearing on the applications by publishing the

time, place, and nature of the hearing one time in a newspaper

published in a county in which all or part of the district is

located. The newspaper must have been published regularly for

more than 12 months preceding the date of the publication of the

notice and must have circulation in the district. The notice

shall be published not less than 10 days nor more than 20 days

before the date of the hearing.

Acts 1971, 62nd Leg., p. 372, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.709. HEARING PROCEDURE. The board shall hear all

interested parties and all evidence in connection with the

applications.

Acts 1971, 62nd Leg., p. 373, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.710. BOARD'S RESOLUTION TO SUBSTITUTE LAND. If the

board finds that all the conditions provided for the exclusion of

land and inclusion of other land in the district exist, it may

adopt and enter in its minutes a resolution to exclude land which

is nonagricultural or nonirrigable in a practicable manner and

include land which may be irrigated from the facilities of the

district in a practicable manner.

Acts 1971, 62nd Leg., p. 373, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.711. LIABILITY OF EXCLUDED AND INCLUDED LAND. The land

excluded from the district is free from any lien or liability

created on the excluded land by reason of its having been

included in the district. Land added to the district is subject

to all laws, liens, and provisions governing the district and the

land in the district.

Acts 1971, 62nd Leg., p. 373, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.712. DUTY TO ADVISE EXECUTIVE DIRECTOR. The board shall

furnish the executive director a detailed description of the land

excluded and a detailed description of the land included within

30 days after the exclusion and inclusion of land under the

provisions of Sections 51.702-51.711 of this code.

Acts 1971, 62nd Leg., p. 373, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1981, 67th Leg., p. 961, ch. 367, Sec. 1, eff.

June 10, 1981.

Sec. 51.713. RIGHT TO SERVE NEW LAND INCLUDED IN DISTRICT. The

district has the same right to furnish water service to the

included land that it previously had to furnish service to the

excluded land. The mere inclusion of a larger total acreage than

that excluded does not give the district the right to irrigate a

larger total acreage or to appropriate a larger quantity or

volume of public water for irrigation than the district would

have had the right to irrigate or to appropriate before the

exclusion and inclusion of the land.

Acts 1971, 62nd Leg., p. 373, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Without reference to the amendment of this section by Acts 1995,

74th Leg., ch. 778, Sec. 2, this section was repealed by Acts

1995, 74th Leg., ch. 715, Sec. 40 effective September 1, 1995.

Sec. 51.714. ADDING LAND BY PETITION OF LANDOWNER. The owner of

land may file with the board a petition requesting that the land

described by metes and bounds in the petition be included in the

district. Notwithstanding any municipal ordinance, resolution, or

any other statute to the contrary, a municipality may not require

the annexing district or the landowner who is requesting

annexation to obtain the municipality's consent to the district's

annexation of the additional land if, at the time the petition is

filed, the land to be annexed is contiguous to the district and

at any time within the preceding 12 months was not located within

an area designated by ordinance or resolution of the

municipality's governing body as the municipality's water and

sewer service area or corporate limits, and the district has not

previously issued any bonded indebtedness. The land shall be

deemed to be contiguous to the district if it is separated from

the district by public land or right of way. A district may not

increase its total land area by more than 100 percent in any one

calendar year. A municipality's consent shall not be required for

the inclusion or annexation of irrigable land within the

boundaries of a district primarily engaged in providing

irrigation service to lands within its boundaries.

Acts 1971, 62nd Leg., p. 373, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1993, 73rd Leg., ch. 192, Sec. 1, eff. Aug. 30,

1993; Acts 1995, 74th Leg., ch. 778, Sec. 2, eff. June 16, 1995.

Sec. 51.732. CONSOLIDATION OF DISTRICTS. Two or more districts

governed by the provisions of this chapter may consolidate into

one district as provided by Sections 51.733-51.736 of this code.

Acts 1971, 62nd Leg., p. 376, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.733. ELECTIONS TO APPROVE CONSOLIDATION. (a) After the

directors of each district have agreed on the terms and

conditions of consolidation, they shall order an election in each

district to determine whether the districts should be

consolidated.

(b) The directors of each district shall order the election to

be held on the same day in each district and shall give notice of

the election for at least 20 days in the manner provided by law

for other elections.

(c) The districts may be consolidated only if the electors in

each district vote in favor of the consolidation.

Acts 1971, 62nd Leg., p. 376, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.734. GOVERNING CONSOLIDATED DISTRICTS. (a) After two

or more districts are consolidated, they become one district,

except for the payment of debts created before consolidation, and

are governed as one district.

(b) During a period of 90 days after the date of the election to

approve consolidation, the officers of each district shall

continue to act jointly as officers of the original districts to

wind up the affairs of their respective districts.

(c) The consolidation agreement may provide that the officers of

the original districts shall continue to act jointly as officers

of the consolidated district until the next general election or

name persons to serve as officers of the consolidated district

until the next general election if all officers of the original

districts agree to resign.

(d) New officers of the consolidated district must qualify as

officers of the district within the period of 90 days after the

election and shall assume their offices at the expiration of the

90-day period.

(e) The current board shall approve the bond of each new

officer.

(f) The consolidation agreement may provide for the

establishment of five voting precincts described in the agreement

and for the election of one director from each precinct. A

district that adopts the precinct method of election will retain

that method if it elects to be governed by another chapter of

this code.

Acts 1971, 62nd Leg., p. 377, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1977, 65th Leg., p. 1764, ch. 712, Sec. 1, eff.

Aug. 29, 1977.

Sec. 51.735. DEBTS OF ORIGINAL DISTRICTS. After two or more

districts are consolidated, the debts of the original districts

are protected and are not impaired. These debts may be paid by

taxes or assessments levied on the land in the original districts

as if they had not consolidated or contributions from the

consolidated district on terms stated in the consolidation

agreement.

Acts 1971, 62nd Leg., p. 377, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.736. ASSESSMENT AND COLLECTION OF TAXES. After

consolidation, the officers of the consolidated district shall

assess and collect taxes on property in the original district to

pay debts created by the original district.

Acts 1971, 62nd Leg., p. 377, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.748. DIVISION OF ORIGINAL DISTRICT WITH NO OUTSTANDING

INDEBTEDNESS. (a) An original district heretofore created and

governed by the provisions of this chapter (an "original

district") that does not have any outstanding indebtedness

secured by the taxes or net revenues of an original district may

divide into two or more districts as provided by Sections 51.749

through 51.758 of this code; provided, however, no division shall

occur that would result in the creation of a district of less

than 100 acres in size. Upon petition of any landowner or upon

the board's own motion, the board may consider a proposal to

divide the original district.

(b) A district that:

(1) is located in two or more counties;

(2) is within the jurisdiction of two river authorities, one of

which has issued an interbasin transfer permit to a city which

provides the district's water supply;

(3) has not constructed any facilities or incurred any

indebtedness secured by taxes or net revenues; and

(4) was created by division under Sections 51.749 through 51.758

of this code may divide into two or more districts as provided by

Sections 51.749 through 51.758 of this code; provided, however,

no division shall occur that would result in the creation of a

district of less than 100 acres in size. On petition of any

landowner or on the board's own motion, the board may consider a

proposal to divide the district.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989. Amended by Acts 1995, 74th Leg., ch. 437, Sec. 1, eff. Aug.

28, 1995.

Sec. 51.749. ELECTION TO APPROVE DIVISION. (a) After the board

of the original district has agreed on the terms and conditions

of division, which shall include a plan for the payment of any

outstanding current obligations and performance of any

outstanding obligations of the original district, and has

prepared a metes and bounds description of the proposed

districts, it shall order an election to be held in the district

to determine whether the original district should be divided as

proposed.

(b) The board of the original district shall order the election

to be held and shall give notice of the election at least 20 days

prior to the election in the manner provided by law for other

elections.

(c) The original district shall be divided if a majority of the

qualified electors in the original district vote in favor of the

division. The resulting districts shall be assigned consecutive

letters, corresponding to the number of the original district.

For example, Harris County WCID #1 if divided into two districts

shall become Harris County WCID #1A and Harris County WCID #1B.

No other confirmation election shall be necessary. Provided,

however, each resulting district desiring to issue bonds payable

wholly or partially from ad valorem taxes shall be required to

obtain authorization for the issuance of such bonds by a majority

vote of the resident electors of such district voting in an

election called for that purpose. Notice of such election shall

be given as generally set forth for bond elections in this

chapter. Each resulting district desiring to levy a maintenance

tax shall be required to obtain authorization by a majority vote

of the qualified resident electors of such district voting in an

election called for that purpose. Notice of such election shall

be given as generally set forth for such elections in this

chapter.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989.

Sec. 51.750. GOVERNING RESULTING DISTRICTS. (a) After the

original district is divided into two or more districts, the

resulting districts shall be separate districts and shall be

governed as separate districts.

(b) During a period of 90 days after the date of the election to

approve division, the board of the original district shall

continue to act in behalf of the original district to wind up the

affairs of the original district.

(c) The directors of the original district shall continue to act

as directors of one of the resulting districts until the next

general election and shall name persons to serve as temporary

directors of each of the other resulting districts until an

election is held on the next uniform election date for elections

set forth in Section 41.001, Election Code, for the election of

permanent directors. Upon the election of such directors, the

three directors receiving the greatest number of votes shall

serve until May of the first even-numbered year after the

expiration of four years from the date of the election and two

directors shall serve until May of the first even-numbered year

after the expiration of two years from the date of the election.

(d) The temporary directors of each of the resulting districts

must qualify as directors of the district pursuant to Section

51.072 within the period of 90 days after the election approving

the division of the original district and shall assume their

offices at the expiration of the 90-day period.

(e) The board of each of the resulting districts shall approve

the bond of each director.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 7, eff.

Sept. 1, 1995.

Sec. 51.751. CURRENT OBLIGATIONS OF ORIGINAL DISTRICT. After

the division of the original district into two or more districts,

the current obligations and any bond authorizations of the

original district are protected and are not impaired. These debts

may be paid by taxes, revenues, or assessments levied on the land

in the original district as if it had not divided or

contributions from each of the resulting districts on terms

stated in the division proposed by the board and approved by the

election under Section 51.749 of this code.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989.

Sec. 51.752. POWERS OF RESULTING DISTRICTS. (a) After

division, each of the resulting districts shall have all of the

power to incur and pay debts created by each district and shall

in every respect have the full power and authority of a district

created and governed by the provision of this chapter.

(b) Each of the resulting districts shall have the authority to

contract with one another for the provision of water, wastewater,

and such other matters as the board of directors of each of the

districts deems appropriate.

(c) Each of the resulting districts shall assume the obligations

of the original district under any agreements or resolutions

consenting to the creation of the original district imposed by

any municipality having jurisdiction over such creation to the

extent that such agreements and resolutions (i) are applicable,

(ii) are not contrary to any other law or the provisions of this

chapter, and (iii) do not impose obligations that limit the

district's powers and authority to issue bonds for any purpose

authorized under this chapter. Any such obligations that so limit

the district's powers and authority to issue bonds for any

purpose authorized under this chapter are void.

(d) Any other obligations of the original district shall be

divided pro rata among the resulting districts either on an

acreage basis or on such other terms as are satisfactory to such

resulting districts.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989. Amended by Acts 1995, 74th Leg., ch. 778, Sec. 3, eff. June

16, 1995.

Sec. 51.753. NOTICE OF RESULTING DISTRICTS. Within 30 days

after the election within the original district that confirms a

plan for division, the original district shall provide written

notice of such plan to the commission, the attorney general, the

commissioners court of any county in which such original district

is located, and any municipality having extraterritorial

jurisdiction over the land within the original district.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.323, eff.

Sept. 1, 1995.

Sec. 51.754. EXCLUSION OF LAND FROM DISTRICT WITHOUT

INDEBTEDNESS. An original district governed by the provisions of

this chapter that does not have any outstanding indebtedness

secured by the taxes or net revenues of the district may exclude

land from the district as provided by Sections 51.754 through

51.758 of this code.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989.

Sec. 51.755. APPLICATION TO EXCLUDE LAND. (a) A petition for

exclusion of land under Sections 51.748 through 51.758 of this

code must accurately describe the land to be excluded by metes

and bounds or by reference to a plat recorded in the plat records

of the county or counties in which the original district is

located.

(b) The petition must be signed by the owner or owners of the

land to be excluded, or by at least 10 percent of the owners of

the land to be excluded, or by five or more of the owners if the

number of owners is more than 50, and must be filed with the

district at least 15 days before the hearing on the petition for

exclusion and shall clearly state the particular grounds on which

the exclusion is sought. Only the ground stated in the petition

shall be considered. Notice of the hearing shall be published by

the board once a week for two consecutive weeks in one or more

newspapers of general circulation in the original district. The

first publication shall appear at least 15 days and not more than

40 days before the date of the hearing.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989.

Sec. 51.756. FINDINGS BY THE BOARD. Before determining to

exclude any land under Sections 51.754 through 51.758 of this

code, the board shall find that the district has no obligations

that will be impaired by the exclusion of the land, the district

will incur no obligations because of that exclusion, and that the

exclusion is in the best interest of the district.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989.

Sec. 51.757. EXCLUDING LAND. (a) After considering all

engineering data and other evidence presented to it, if the board

makes the findings provided in Section 51.756 of this code and

determines that it would be in the best interest of the district

to exclude the land, the board shall enter an order excluding all

land meeting the conditions and shall redefine the boundaries of

the original district in order to embrace all land not excluded.

In the event the land to be excluded contains water or wastewater

customers of the district, such customers shall remain customers

of the district, and owners of lots to which district water and

wastewater facilities have already been extended shall also be

allowed to connect to the district's system and shall be

customers of the district.

(b) Except as provided by Subsection (d) of this section, an

order excluding land pursuant to a petition signed by the owner

or owners of the land to be excluded takes effect on the date the

board enters the order.

(c) Except as provided by Subsection (d) of this section, an

order excluding land pursuant to a petition signed by less than

all of the owners of the land to be excluded takes effect:

(1) if the district does not receive a timely petition under

Section 51.758 of this code on the day following the deadline for

submission of a petition; or

(2) if the district receives timely petition under Section

51.758 of this code and the exclusion is ratified at an election

held for that purpose.

(d) Before an order excluding land under Sections 51.754 through

51.758 of this code becomes effective, all taxes levied and

assessed by the district on the land to be excluded shall be

fully paid.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989.

Sec. 51.758. NOTICE OF CERTAIN EXCLUSIONS; PETITION FOR

RATIFICATION ELECTION. (a) If the board issues an order

excluding land pursuant to a petition signed by less than all of

the owners of the land to be excluded, the board shall publish

notice describing the excluded land and stating that the

exclusion becomes final if the district does not receive, not

later than the 35th day after the date of the board's order, a

petition requesting a ratification election that is signed by at

least 10 percent of the qualified voters that reside in the land

area to be excluded.

(b) The board shall publish the notice required by Subsection

(a) of this section once a week for two consecutive weeks in a

newspaper of general circulation in the district. The first

notice must be published not later than the fifth day after the

date of the board's order.

(c) If the district receives, not later than the 35th day after

the date of the board's order, a petition requesting a

ratification election that is signed by at least 10 percent of

the qualified voters that reside in the land area to be excluded,

the order does not take effect unless approved by a majority vote

at a ratification election held for that purpose of the residents

of the district.

(d) The notice of the election, the manner and the time of

giving the notice, the manner of holding the election, and

qualifications of the voters are governed by Subchapter E of this

chapter.

Added by Acts 1989, 71st Leg., ch. 280, Sec. 1, eff. Aug. 28,

1989.

Sec. 51.759. EXCLUSION OF CERTAIN NONIRRIGATED LAND. (a) If a

district is principally engaged in providing water for

agricultural irrigation or the primary purpose of the district is

to provide water for agricultural irrigation, by complying with

Sections 51.760 through 51.766, the board may exclude from the

district land that is not being irrigated because:

(1) the land is not irrigable;

(2) the owners of a majority of the acreage of the land no

longer intend to irrigate the land;

(3) the land has been subdivided into town lots, town lots and

blocks, or small parcels having the same general nature of town

lots, including lots and blocks designed, intended, or suitable

for a residential, commercial, or other nonagricultural purpose;

or

(4) the land is located on subdivided land and is:

(A) designated as a street, alley, parkway, or park; or

(B) a railroad property or right-of-way.

(b) Land described by Subsection (a) may be excluded regardless

of whether:

(1) the land is within or near municipal boundaries; or

(2) a plat or map of the land has been filed for record in the

office of the county clerk of the county in which any part of the

land is located.

(c) The board may not exclude land described by Subsection (a)

if the land has been used for an agricultural purpose within the

year preceding the date of the hearing held under Section 51.761.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

Sec. 51.760. INITIATING EXCLUSION. (a) A petition to exclude

land may be filed with the board by the owners of a majority in

acreage of land described by Section 51.759 that is located in

the district.

(b) The petition must accurately describe the land to be

excluded by metes and bounds or lot and block number. A petition

for exclusion of other property must describe the property to be

excluded.

(c) The board may initiate a proceeding to exclude land without

receiving a petition by holding a hearing on its own motion and

issuing an order as provided by Section 51.761.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

Sec. 51.761. HEARING, NOTICE, AND ORDER OF EXCLUSION. (a) On

the board's motion or on receipt of a petition to exclude land,

the board shall give notice and hold a hearing on the proposed

exclusion.

(b) The board shall publish notice of the hearing in a newspaper

of general circulation in the district once each week for two

consecutive weeks. The first publication must appear at least 14

days before the date of the hearing.

(c) The notice must advise interested property owners in the

district:

(1) of the right to offer evidence in support of or to contest

the proposed exclusion;

(2) of the right to present a petition for exclusion under

Sections 51.759 through 51.766;

(3) of the date, time, and place of the hearing; and

(4) by a general description of the property proposed for

exclusion.

(d) The board may adjourn the hearing from one day to another

until the board hears every person who desires to be heard.

(e) The board shall specifically describe all property that it

proposes to exclude on its own motion.

(f) In a hearing on exclusion of property on the board's own

motion, the board shall hear protests and evidence against the

exclusion before the board hears any other evidence or matter.

(g) The board shall issue an order excluding the property if

after considering evidence presented at the hearing the board

finds that:

(1) the described property is eligible for exclusion under

Section 51.759;

(2) if applicable, the written consent required by Section

51.762 has been filed;

(3) the owners of the property to be excluded do not object to

the exclusion; and

(4) to exclude the property from the district is in the best

interest of the district and of the property.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

Sec. 51.762. CONSENT OF DEBT HOLDERS. If the district has

outstanding bonded debt or debt under a loan from a governmental

agency, a written consent to the exclusion from an authorized

representative of the holders of the debt shall be obtained and

filed with the district before the hearing is held.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

Sec. 51.763. RESULTS OF EXCLUSION. (a) On the issuance of an

order excluding property:

(1) the property is no longer a part of the district and is not

entitled to district services;

(2) any tax, assessment, or other charge owed to the district at

the time of exclusion remains the obligation of the owner of

excluded property and continues to be secured by statutory liens

on the property, if any; and

(3) the owner of excluded land has no further liability to the

district for future taxes, assessments, or other charges of the

district attributable to the excluded land.

(b) The district shall record a copy of the order excluding the

property from the district, certified and acknowledged by the

secretary of the board, in the real property records of the

county in which the excluded property is located.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

Sec. 51.764. DISTRICT FACILITIES ON EXCLUDED PROPERTY. The

exclusion does not affect or interfere with any rights that the

district has to maintain and continue operation of any canal,

ditch, pipeline, pump, or other facility of the district located

on land excluded by the order to serve land remaining in the

district.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

Sec. 51.765. WATER ALLOCATIONS. (a) After the district adopts

an order excluding nonirrigated property, a municipality or water

supply corporation that serves the excluded land with a potable

water supply may petition the district to apply to the commission

to convert the proportionate irrigation water allocation of the

excluded land from irrigation use to municipal use allocation.

(b) The district shall make the application to the commission

not later than the 30th day after the date a municipality or

water supply corporation that serves the land with a potable

water supply petitions the district to make the application if

the municipality or water supply corporation:

(1) pays the district the amount the district estimates will be

its reasonable expenses and attorney's fees incurred in the

commission conversion proceedings; and

(2) enters into an agreement with the district establishing the

terms on which the water allocation shall be delivered or made

available to the municipality or water supply corporation.

(c) If the parties cannot agree to water allocation terms, the

parties shall attempt resolution of their differences through

mediation, arbitration, or another alternative dispute resolution

process. The commission does not have jurisdiction to resolve the

parties' differences.

(d) Together with the district's application, the municipality

or water supply corporation must provide the commission with

evidence to support the projected need for water for the five

years after the conversion to a municipal-use water allocation.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

Sec. 51.766. SUIT TO REVIEW EXCLUSION. (a) A person who owns

an interest in property affected by an exclusion order issued

under Section 51.761 may sue to review, set aside, modify, or

suspend the order not later than the 20th day after the effective

date of the order.

(b) Venue is in any district court that has jurisdiction in the

county in which the district is located. If the district includes

land in more than one county, venue is in the district court

having jurisdiction in the county in which the largest portion of

the acreage of the land sought to be excluded from the district

is located.

(c) A person may appeal from the judgment or order of a district

court in a suit brought under this section to the court of civil

appeals and the supreme court as in other civil cases in which

the district court has original jurisdiction.

Added by Acts 1995, 74th Leg., ch. 42, Sec. 1, eff. Aug. 28,

1995.

SUBCHAPTER P. DISSOLUTION OF DISTRICT

Sec. 51.781. DISSOLUTION OF DISTRICT PRIOR TO ISSUANCE OF BONDS.

(a) If the electors of a district reject the proposal to issue

construction bonds by a constitutional or statutory majority

vote, the board must dissolve the district and liquidate the

affairs of the district as provided in Sections 51.781-51.792 of

this code.

(b) Subject to the provisions of Subchapter G of Chapter 50 of

this code, if a district finds at any time before the

authorization of construction bonds or the final lending of its

credit in another form that the proposed undertaking for any

reason is impracticable or apparently cannot be successfully and

beneficially accomplished, the board may issue notice of a

hearing on a proposal to dissolve the district.

(c) Subject to the provisions of Subchapter G of Chapter 50 of

this code, if 20 percent of the qualified voters of a district

petition the board for a hearing on a proposal to dissolve the

district and deposit with the board an amount estimated to cover

the actual cost of giving notice and holding the hearing, the

board shall publish notice of the hearing within 10 days and

shall hold the hearing within 40 days after the filing of the

petition, as provided in Sections 51.782-51.785 of this code. If

the finding is against the petition, the deposit shall be applied

to pay the cost of giving notice and holding the hearing.

Acts 1971, 62nd Leg., p. 377, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.782. NOTICE OF HEARING. The board shall post notice of

the hearing on the bulletin board at the courthouse door of each

county in which the district is located and at three or more

other public places within the boundaries of the district. The

notice must be posted at least 10 days before the hearing on the

proposed dissolution of the district.

Acts 1971, 62nd Leg., p. 378, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.783. HEARING. The board shall hear all interested

persons and shall consider their evidence at the time and place

stated in the notice.

Acts 1971, 62nd Leg., p. 378, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.784. BOARD'S ORDER TO CONTINUE OR DISSOLVE DISTRICT.

The board shall determine from the evidence whether the best

interests of the persons, land, and property in the district will

be promoted by prosecuting the district's plans or whether the

best interests of the persons and property in the district will

be served by dissolving the district, and the board shall enter

the appropriate findings and order in the record.

Acts 1971, 62nd Leg., p. 378, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.785. JUDICIAL REVIEW OF BOARD'S ORDER. The board's

decree to continue or to dissolve the district shall be final and

cannot be judicially reviewed except on the ground of fraud,

palpable error, or gross abuse of discretion.

Acts 1971, 62nd Leg., p. 378, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.786. APPOINTMENT OF TRUSTEE. (a) If the board orders

the dissolution of the district, it shall appoint a director or

some other competent person as trustee to close the affairs of

the district as soon as practicable.

(b) The board shall determine the term of service and the amount

of compensation for the trustee.

Acts 1971, 62nd Leg., p. 378, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.787. DISCHARGE OF DISTRICT'S OBLIGATIONS BY TRUSTEE.

(a) The trustee shall reduce all assets and resources of the

district to possession and money and apply them to discharge the

outstanding obligations of the district, having regard to

specific funds.

(b) If required, the board shall levy, assess, and collect

sufficient additional taxes to pay all necessary expenses and

outstanding obligations of the district.

Acts 1971, 62nd Leg., p. 378, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.788. DISCHARGE OF TRUSTEE. The trustee shall be

discharged when all obligations of the district are paid and the

trustee's account is verified and settled.

Acts 1971, 62nd Leg., p. 379, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.789. FINAL ORDER OF DISSOLUTION. After all obligations

are paid and the trustee is discharged, the board shall enter its

final order of dissolution and record the final order in the deed

records of the county or counties in which the district is

located.

Acts 1971, 62nd Leg., p. 379, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.790. WATER RIGHTS OF DISSOLVED DISTRICT. Water rights

held from the state shall revert to the state and may not be

assigned by the district in anticipation of dissolution.

Acts 1971, 62nd Leg., p. 379, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.791. TAXES IN EXCESS OF DISTRICT'S OBLIGATIONS. (a) If

taxes have been collected by the dissolved district in excess of

the amount required to liquidate the obligations of the district,

the excess shall be paid ratably to the county treasurer or

treasurers of the county or counties in which the district was

located.

(b) The commissioners courts shall credit the money received

from the dissolved district to the interest and sinking fund for

any outstanding county bonds. If the county has no outstanding

bonds, the money may be applied as the commissioners court

lawfully directs.

Acts 1971, 62nd Leg., p. 379, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.793. DISSOLUTION OF DISTRICT FOR FAILURE TO COMPLETE

PLANT. Subject to the provisions of Subchapter G of Chapter 50

of this code if a district has not within 10 years from the date

of its creation commenced and completed the construction of a

plant and improvements to carry out the purposes of its creation

in accordance with the plans adopted by the district, the board

may enter a resolution in its minutes to dissolve the district

under the provisions of Sections 51.794-51.828 of this code.

After compliance with these provisions, a vote of the electors of

the district, and the payment of its valid, enforceable

indebtedness, the district may be dissolved.

Acts 1971, 62nd Leg., p. 379, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.794. RESOLUTION TO DISSOLVE DISTRICT. The board shall

find in its resolution to dissolve the district that the plans of

the district are impracticable or that the purposes of the

district should be abandoned and shall state the reasons for the

finding.

Acts 1971, 62nd Leg., p. 379, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.795. STATEMENTS OF INDEBTEDNESS AND EXPENSES. The board

shall prepare or have prepared and shall approve a statement of

all valid, enforceable indebtedness of the district and shall

enter the statement in the minutes. The board shall prepare or

have prepared an estimate of all expenses incurred or to be

incurred in the dissolution of the district and in the collection

of sufficient taxes to pay all valid, enforceable indebtedness of

the district.

Acts 1971, 62nd Leg., p. 380, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.796. ELECTION TO APPROVE DISSOLUTION OF DISTRICT AND

ISSUANCE OF DISSOLUTION BONDS. The board shall enter an order

calling an election to determine whether or not the district

shall be dissolved and bonds issued to pay the district's

indebtedness and estimated expenses.

Acts 1971, 62nd Leg., p. 380, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.797. MAXIMUM AMOUNT, INTEREST RATE, AND MATURITY OF

BONDS. The maximum amount of bonds to be voted on and issued

shall not be more than the total amount of the approved valid,

enforceable indebtedness and the estimate of expenses, exclusive

of the estimated cost of collection of taxes. The maximum amount

of bonds, exclusive of interest and expenses of collection, to be

issued for fees and expenses of dissolution of the district shall

not be more than an amount equal to $2 times the number of acres

in the district. The bonds shall mature serially over a period of

not more than seven years.

Acts 1971, 62nd Leg., p. 380, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.798. NOTICE OF ELECTION. (a) The president and

secretary of the board shall issue notice of the election,

stating:

(1) the findings of the board with reference to the dissolution

of the district;

(2) the amount of bonds to be issued;

(3) the interest rate on the bonds; and

(4) the time and place of the election.

(b) The notice also shall contain a statement of the estimates

and the expenses incurred and to be incurred in the dissolution

of the district and the collection of taxes for the payment of

the bonds and shall state that the bonds will be payable by the

levy of taxes on the taxable property in the district in

proportion to the values of the property as provided in Section

51.804 of this code.

(c) The notice shall be published once a week for two

consecutive weeks in a newspaper with general circulation in the

county or counties in which any part of the district is located.

The first publication shall be at least 14 days before the day of

the election.

Acts 1971, 62nd Leg., p. 380, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.799. PROCEDURE FOR HOLDING ELECTION. (a) The ballots

for the election shall be printed to provide for voting for or

against the proposition: "Dissolution of the district and

issuance of dissolution bonds and the levy of taxes for the

payment of the bonds."

(b) The election shall be conducted and returns made and

canvassed according to the provisions in this chapter for

construction bond elections.

Acts 1971, 62nd Leg., p. 380, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.800. ISSUANCE AND SALE OF DISSOLUTION BONDS. (a) If a

majority of the electors at the election vote in favor of the

dissolution of the district and the issuance of bonds and the

levy of taxes for the payment of the bonds, the board shall issue

and sell the bonds or any part of them. The bonds shall be known

as "dissolution bonds."

(b) The board may deliver the dissolution bonds or any part of

them in satisfaction of the valid, enforceable indebtedness of

the district for which the bonds are issued, or in payment of

expenses incurred or to be incurred in connection with the

dissolution of the district, or in payment of services rendered

or to be rendered to the district.

(c) The dissolution bonds shall be:

(1) serially numbered, commencing with the first maturities;

(2) issued in the name of the district;

(3) signed by the president; and

(4) attested by the secretary, with the seal of the district

attached.

(d) The board shall determine the maturities of the bonds not to

exceed seven years from their date, the denominations of the

bonds, and the interest.

Acts 1971, 62nd Leg., p. 381, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.801. DESTROYING UNSOLD BONDS. If a majority of the

electors at the election vote in favor of the dissolution of the

district, the board shall destroy all unsold bonds of the

district and enter an order cancelling all unissued and unsold

bonds authorized by the electors. After the destruction and the

entry of the order, the bonds shall have no further force or

effect.

Acts 1971, 62nd Leg., p. 381, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.802. BOARD'S AUTHORITY TO CONTRACT. The board may

contract with trustees, engineers, attorneys, and others it

considers necessary or desirable to properly liquidate and wind

up the affairs of the district. The board also may assume

obligations made by others for the benefit of the district, or

from which the district benefited, which in its judgment may be

fair and equitable.

Acts 1971, 62nd Leg., p. 381, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.803. TAX TO PAY DISSOLUTION BONDS. The order issuing

the dissolution bonds shall provide that the principal of and

interest on the bonds shall be payable from the proceeds of a tax

to be levied on the taxable property located in the district. The

tax shall be in an amount sufficient for the payment of the

principal and interest.

Acts 1971, 62nd Leg., p. 381, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.804. DETERMINING AMOUNT OF TAX. (a) The value of all

of the taxable property of the district shall be taken at the

assessed value as determined in the manner provided by the

Property Tax Code, and an amount equal to the total of the

principal and all interest to maturity on the bonds voted plus

the estimated cost of collection of taxes shall be assessed

against the taxable property of the district on the ad valorem

basis.

(b) The tax against the taxable property of each owner shall be

that portion of the total principal and interest of the

dissolution bonds and costs of collection which the assessed

value of the taxable property of the owner bears to the total

assessed values in the district.

Acts 1971, 62nd Leg., p. 381, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.805. PAYMENT OF TAX. The amount of the tax on the

taxable property of each owner shall be payable in equal annual

installments during the period in which the bonds mature, on

dates specified in the order issuing the bonds.

Acts 1971, 62nd Leg., p. 382, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.806. ADVANCE PAYMENT OF TAXES IN CASH. The order

issuing the bonds shall provide that a property owner may secure

release of the entire amount of his taxable property as assessed

on the rolls from the tax levied for the dissolution bonds by the

payment in cash of the full amount of tax.

Acts 1971, 62nd Leg., p. 382, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.807. COMPUTING AMOUNT OF ADVANCE CASH PAYMENT. (a) In

order to compute the full amount of an advance cash payment, the

interest rate on the bonds shall be applied on an annual basis to

each unpaid installment of taxes for the number of years the

installment of taxes must run before being due. The total of the

items computed shall be deducted from the face amount of the

unpaid installments of taxes.

(b) In order to compute the full amount of an advance cash

payment, the interest rate on the bonds shall be applied on an

annual basis to each unpaid past-due installment of taxes for the

number of years the installment has been past due, and 10 percent

of the face amount of each installment that is past due shall be

added as a penalty. The total of the items computed shall be

added to the unpaid installments.

Acts 1971, 62nd Leg., p. 382, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.808. SURRENDER OF BONDS IN PAYMENT OF TAXES. The order

issuing the bonds shall provide that any of the bonds with all

unmatured interest and all appurtenant coupons may be surrendered

at any time in payment of all unpaid installments of the taxes.

The amount of taxes found to be due by the method provided in

Section 51.809 of this code may be discharged by the surrender of

the proper amount of dissolution bonds, together with all unpaid

appurtenant interest coupons at the face value of the bonds and

coupons.

Acts 1971, 62nd Leg., p. 382, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.809. COMPUTING AMOUNT OF PAYMENT MADE BY SURRENDERING

BONDS. (a) In order to compute payment by surrendering bonds,

the interest rate on the bonds shall be applied on an annual

basis to each unpaid installment of taxes for the number of years

the installment must run before being due. The total of the items

computed shall be deducted from the face amount of the unpaid

installments of taxes.

(b) In order to compute payment by surrendering bonds, the

interest rate on the bonds shall be applied to each unpaid

installment of taxes for the number of years the installment has

been past due and 10 percent of the face amount of each

installment of taxes that is past due shall be added as a

penalty. The total of the items computed shall be added to the

face amount of each unpaid installment of taxes.

Acts 1971, 62nd Leg., p. 382, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.810. USE BY TRUSTEE OF ADVANCE PAYMENTS OF TAX. The

order issuing the bonds shall provide that the bonds shall be

called and redeemed by the trustee in the inverse order of their

maturity and in the inverse order of their serial numbers. They

shall be paid out of any funds received in advance payment of

taxes that are not required for meeting any past-due and unpaid

principal and interest or the next maturing installment of

principal and interest.

Acts 1971, 62nd Leg., p. 383, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.811. APPROVAL AND REGISTRATION OF DISSOLUTION BONDS.

After the dissolution bonds are issued by the board and before

they are put in circulation, the bonds, at the option of the

board, shall either be submitted to and approved by the attorney

general and registered by the comptroller as provided in Sections

51.416-51.418 of this code or be validated by suit as provided in

Sections 51.423-51.431 of this code. The provisions of these

sections of this code which are not inconsistent with the

provisions of this subchapter are applicable to the dissolution

bonds provided for in this subchapter.

Acts 1971, 62nd Leg., p. 383, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.812. DISSOLUTION TAX ROLL. Before the issuance and

delivery of the bonds, the board shall have the amount of

dissolution tax imposed on each property in the district and its

orders relating to the time and manner of payment of the tax

entered on the current tax roll for the district.

Acts 1971, 62nd Leg., p. 383, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.819. FILING DISSOLUTION TAX ROLL. After the preparation

of the dissolution tax roll, the board shall file the tax roll

with the assessor and collector of the county or counties in

which the district is located.

Acts 1971, 62nd Leg., p. 384, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.820. COLLECTION OF TAXES. The assessor and collector

shall collect the taxes determined under Section 51.804 of this

code on the land located in the county for which he is assessor

and collector at the time and in the manner specified by the

board in its various orders issuing the dissolution bonds and

levying the taxes.

Acts 1971, 62nd Leg., p. 384, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.821. APPOINTMENT OF TRUSTEE. (a) Before the issuance

and delivery of dissolution bonds, the board shall appoint a

trustee of the funds to be collected from the taxes. The trustee

shall be an individual or a bank or trust company in the county

or one of the counties in which the district is located.

(b) The board may determine the powers, rights, duties,

liabilities, and other matters relating to the trusteeship and

the appointment of successor trustees which the board considers

proper to effectuate the purpose of the trusteeship.

(c) The board may determine the bond to be given by the trustee

and the amount to be paid to the trustee from the funds collected

from the taxes.

Acts 1971, 62nd Leg., p. 384, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.822. AUTHORITY OF THE TRUSTEE. The trustee shall

receive from the assessor and collector all proceeds from the

assessments less the assessor and collector's charges and shall

be the paying agent of the district for the bonds. The bonds

shall be payable at the place of business of the trustee. The

trustee shall be authorized by the order providing for the

issuance of the bonds to institute suits in the name of the

district for the use and benefit of the holders of the bonds and

to apply all sums of money recovered in the suits to the payment

of the bonds.

Acts 1971, 62nd Leg., p. 385, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.823. TAX LIEN. After filing the tax roll in the office

of the assessor and collector, the taxes, penalties, interest,

and attorney's fees shall become a specific charge on and be

secured by a lien superior to all other liens, except tax liens,

on the personal property, land, and improvements listed on the

tax roll regardless of whether the ownership of the personal

property, land, and improvements is correctly stated on the tax

roll.

Acts 1971, 62nd Leg., p. 385, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.824. FORECLOSURE OF LIEN. The lien may be foreclosed in

the manner prescribed in the Property Tax Code in a suit or suits

brought in the name of the district by the board, or by the

trustee or his successor as provided by the board.

Acts 1971, 62nd Leg., p. 385, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

Sec. 51.825. DEFAULT IN PAYMENT OF TAX INSTALLMENT. (a)

Default in the payment of an installment of taxes levied for the

payment of dissolution bonds for 60 days after the installment

becomes due and payable as provided by the board shall, at the

option of the board or the trustee, immediately mature the

remaining installments and cause the entire amount of the taxes

to immediately become due and payable.

(b) The trustee shall bring suit for the collection of the

entire amount of the taxes and for the foreclosure of the lien

securing the payment of the taxes.

Acts 1971, 62nd Leg., p. 385, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.826. PENALTY AND ATTORNEY'S FEE. (a) A penalty of 10

percent of the unpaid amount of taxes shall accrue immediately on

default of payment of taxes after the 60 days.

(b) An attorney's fee of 10 percent of the unpaid amount of the

taxes is due and payable immediately on institution of suit for

collection and foreclosure.

(c) The penalty and attorney's fee shall be recovered in the

suit and shall constitute an addition to the taxes and shall be

secured by the tax lien.

Acts 1971, 62nd Leg., p. 385, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.827. DISCHARGE OF LIEN. (a) On the final payment of

the taxes, either the assessor and collector or the trustee shall

issue a certificate certifying that the taxes have been fully

satisfied and the lien is released.

(b) The execution and acknowledgment of the certificate and the

recording of the certificate in the deed records of the county in

which the property is located shall be full and conclusive

evidence of the discharge of the taxes and lien.

Acts 1971, 62nd Leg., p. 386, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.828. DISTRICT CONSIDERED DISSOLVED. (a) On the

issuance and sale or delivery of the dissolution bonds and the

appointment and qualification of the trustee, the secretary shall

deposit all available existing records of the district in the

office of the county clerk of the county or one of the counties

in which the district is located.

(b) The district immediately is considered dissolved for all

purposes, except that the taxes levied against the taxable

property may be enforced in the name of the district on behalf of

the bondholders by the trustee or his successors. The surviving

board may meet from time to time until the dissolution bonds are

paid and discharged and may delegate its powers and give

instructions to the trustee or his successors as the board sees

fit and circumstances warrant. After the payment of all

dissolution bonds, interest, and costs of collection, the board

shall be dissolved.

(c) The board or the trustee if the board transfers the duty to

the trustee shall give notice to the county clerk that all

dissolution bonds, interest, and costs of collection have been

paid. The clerk shall notify the director and librarian of the

Texas State Library and arrange for the transfer of the records

of the district to the custody of the Texas State Library and

Archives Commission.

Acts 1971, 62nd Leg., p. 386, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1989, 71st Leg., ch. 1248, Sec. 70, eff. Sept. 1,

1989.

Sec. 51.829. DISSOLUTION OF DISTRICT IN COUNTIES OF LESS THAN

11,000 POPULATION. Subject to the provisions of Sections

50.251-50.256 of this code, a district located entirely in a

county having a population of less than 11,000, according to the

last preceding federal census, may be abolished by a majority

vote of the electors residing in the district at an election held

for the purpose of determining whether or not the district should

be dissolved.

Acts 1971, 62nd Leg., p. 386, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.830. PETITION FOR DISSOLUTION OF DISTRICT. A petition

for the dissolution of the district shall be filed with the board

and shall state the name of the district and the purpose for

which the election is requested. The petition may refer to the

order establishing the district for boundaries, limits, and area

of the district.

Acts 1971, 62nd Leg., p. 386, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.831. SIGNATURES ON PETITION. A petition for dissolution

of the district may be signed and filed in two or more copies.

The petition shall be signed by a majority in number of the

property owners with land in the district and the property owners

of a majority in value of the land in the district, as shown by

the tax rolls of the district, or 50 landowners if the number of

landowners in the district is more than 50.

Acts 1971, 62nd Leg., p. 386, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.832. PROCEDURE FOR HOLDING ELECTION. (a) An election

to determine whether or not the district shall be dissolved shall

be held in accordance with the provisions of Subchapter E, of

this chapter.

(b) The ballots for the election shall be printed to provide for

voting for or against the proposition: "The dissolution of

district."

(c) The returns of the election shall be canvassed and the

result declared by the board. The board shall enter an order in

its minutes declaring the result of the election, which order

shall be made and entered in accordance with Section 51.034 of

this code. The order shall be filed in the office of the county

clerk and recorded in the deed records of the county as provided

in Section 51.034 of this code.

Acts 1971, 62nd Leg., p. 387, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.833. ELECTION IN DISTRICT INCLUDING CITY, TOWN, OR

MUNICIPAL CORPORATION. In an election to dissolve a district in

which a city, town, or municipal corporation is located, the

city, town, or municipal corporation shall be a separate voting

precinct, and the ballots cast in the city, town, or municipal

corporation shall be counted and canvassed to show the result of

the election there. If the city, town, or municipal corporation

votes against the dissolution of the district and the balance of

the district votes for the dissolution of the district, the

district shall be dissolved.

Acts 1971, 62nd Leg., p. 387, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.834. SUBSEQUENT ELECTION. If the proposition to

dissolve the district fails to carry at the election held for

that purpose, no other election for the same purpose shall be

held within one year after the date of the election.

Acts 1971, 62nd Leg., p. 387, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.835. DISTRICT DISSOLVED. If a majority of those voting

at the election vote in favor of dissolving the district, the

district shall be dissolved and shall have no further authority

after the election, except that any debts incurred shall be paid

and the organization shall be maintained until all the debts are

paid.

Acts 1971, 62nd Leg., p. 387, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Sec. 51.836. TAXES TO PAY INDEBTEDNESS AFTER DISSOLUTION. If a

district has outstanding bonds or other indebtedness maturing

beyond the current year in which the dissolution occurs, the

commissioners court of the county in which the district is

located shall levy and have assessed and collected, in the manner

prescribed in the Property Tax Code sufficient taxes on all

taxable property in the district to pay the principal of and

interest on the bonds and other indebtedness when due.

Acts 1971, 62nd Leg., p. 387, ch. 58, Sec. 1, eff. Aug. 30, 1971.

Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, Sec. 4(r),

eff. Jan. 1, 1982.

SUBCHAPTER Q. FLOOD CONTROL IN TRINITY RIVER BASIN

Sec. 51.851. DEFINITIONS. In this subchapter:

(1) "Authority" means the Trinity River Authority of Texas.

(2) "Basin" or "basinwide" means the entire Trinity River basin.

Added by Acts 1991, 72nd Leg., ch. 858, Sec. 2, eff. Sept. 1,

1991.

Sec. 51.852. COOPERATION WITH AUTHORITY, CORPS OF ENGINEERS, AND

OTHER OWNERS. The commission, in conjunction with the authority,

the United States Army Corps of Engineers, and other reservoir

owners in the Trinity River basin, shall develop and implement a

coordinated basinwide water release program for flood routing and

control.

Added by Acts 1991, 72nd Leg., ch. 858, Sec. 2, eff. Sept. 1,

1991.

Sec. 51.853. COOPERATION WITH AUTHORITY AND OWNERS. The

commission, in conjunction with the authority and all reservoir

owners in the Trinity River basin, may review, at least every 10

years, all water rights permits affecting the basin.

Added by Acts 1991, 72nd Leg., ch. 858, Sec. 2, eff. Sept. 1,

1991.

Sec. 51.854. FLOOD WARNING SYSTEM. The commission and the

authority, in conjunction with affected political subdivisions,

shall develop a basinwide flood warning system to alert the

public and local officials of imminent flooding in order to

effectuate orderly withdrawal from floodplains and to institute

other appropriate precautions.

Added by Acts 1991, 72nd Leg., ch. 858, Sec. 2, eff. Sept. 1,

1991.

SUBCHAPTER R. OPTION TO EXCHANGE MUNICIPAL JURISDICTION

Sec. 51.871. DEFINITIONS. In this subchapter:

(1) "Dissociated municipality" means a home-rule municipality

from whose extraterritorial jurisdiction a district is

transferred under this subchapter.

(2) "Associated municipality" means a home-rule municipality

into whose extraterritorial jurisdiction a district is

transferred under this subchapter.

(3) "Home-rule municipality" has the meaning assigned by Section

5.004, Local Government Code.

Added by Acts 1993, 73rd Leg., ch. 97, Sec. 1, eff. Sept. 1,

1993.

Sec. 51.872. AUTHORITY TO TRANSFER DISTRICT BETWEEN

MUNICIPALITIES' EXTRATERRITORIAL JURISDICTION. The board of

directors of a district by order may transfer the district from

the extraterritorial jurisdiction of a municipality to the

extraterritorial jurisdiction of another municipality if the

board finds that:

(1) as of January 1, 1993, the municipality that has

extraterritorial jurisdiction over the district excluded the

district from the service area of the municipality's municipally

owned water or sewer utility system;

(2) the other municipality has included or agreed to include the

district within the service area of the municipality's

municipally owned water or sewer utility system, and the

municipality has adopted a water or sewer utility service plan

agreeable to the board; and

(3) the municipally owned water or sewer utility system of the

other municipality has agreed to provide the service to the

district within one year.

Added by Acts 1993, 73rd Leg., ch. 97, Sec. 1, eff. Sept. 1,

1993.

Sec. 51.873. APPLICABILITY. This subchapter applies only to a

district that:

(1) has a contiguous area of more than 1,000 acres;

(2) is within the jurisdiction of two or more counties;

(3) is within the jurisdiction of two river authorities, one of

which has issued an interbasin transfer permit to the associated

municipality;

(4) has not yet constructed any facilities or borrowed any

money;

(5) is in the extraterritorial jurisdiction of the dissociated

municipality and that municipality is located principally in one

of the two counties in which the district is located;

(6) is adjacent to the municipal boundary or the area subject to

the extraterritorial jurisdiction of the associated municipality

and that municipality is located principally in the other of the

two counties in which the district is located; and

(7) is subject to special storm water runoff or nonpoint source

pollution rules of at least one of the two river authorities.

Added by Acts 1993, 73rd Leg., ch. 97, Sec. 1, eff. Sept. 1,

1993.

Sec. 51.874. EFFECT OF TRANSFER. On and after the effective

date of the board's order under Section 51.872 of this chapter,

the district:

(1) is subject to a municipal ordinance that applies to the

extraterritorial jurisdiction of the associated municipality; and

(2) is not subject to a municipal ordinance that applies to the

extraterritorial jurisdiction of the dissociated municipality.

Added by Acts 1993, 73rd Leg., ch. 97, Sec. 1, eff. Sept. 1,

1993.

Sec. 51.875. SUBCHAPTER SUPERSEDES. To the extent of any

conflict, this subchapter controls over any other law related to

the creation, application, or operation of the extraterritorial

jurisdiction of a municipality.

Added by Acts 1993, 73rd Leg., ch. 97, Sec. 1, eff. Sept. 1,

1993.

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