CHAPTER 8270. CNP UTILITY DISTRICT - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE F. MUNICIPAL UTILITY DISTRICTS

CHAPTER 8270. CNP UTILITY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8270.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "District" means the CNP Utility District.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.002. NATURE OF DISTRICT. The district is a municipal

utility district and a conservation and reclamation district in

Harris County created under Section 59, Article XVI, Texas

Constitution.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of

the district will benefit from the works and projects

accomplished by the district under the powers conferred by

Section 59, Article XVI, Texas Constitution.

(c) The creation of the district is essential to accomplish the

purposes of Section 59, Article XVI, Texas Constitution.

(d) The accomplishment of the purposes stated in this chapter is

for the benefit of the people of this state and for the

improvement of their property and industries. The district, in

carrying out the purposes of this chapter, will be performing an

essential public function under the constitution.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.004. STATE POLICY REGARDING WASTE DISPOSAL. The

district's powers and duties are subject to the state policy of

encouraging the development and use of integrated area-wide waste

collection, treatment, and disposal systems to serve the waste

disposal needs of this state's residents, if integrated systems

can reasonably be provided for an area, so as to avoid the

economic burden on residents and the effect on state water

quality caused by the construction and operation of numerous

small waste collection, treatment, and disposal facilities.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT

TERRITORY

Sec. 8270.051. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 751,

Acts of the 61st Legislature, Regular Session, 1969, as that

territory may have been modified under:

(1) Subchapter H, Chapter 54, Water Code;

(2) Subchapter J, Chapter 49, Water Code;

(3) Section 9, Chapter 751, Acts of the 61st Legislature,

Regular Session, 1969; or

(4) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field

notes in the legislative process does not affect:

(1) the district's organization, existence, and validity;

(2) the district's right to issue any type of bond for a purpose

for which the district is created or to pay the principal of and

interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or the board.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.052. EXPANSION OF DISTRICT. (a) If land is added to

the district under Section 49.301, Water Code, the board may

require the petitioners:

(1) to assume the petitioners' pro rata share of the voted but

unissued bonds of the district; and

(2) to authorize the board to impose a tax on the petitioners'

property to pay for the bonds after the bonds have been issued.

(b) If land is annexed in the manner provided by Section 49.302,

Water Code, the board may also submit a proposition to the voters

of the area to be annexed on the question of the assumption by

the area to be annexed of its part of the voted but not yet

issued or sold tax or tax-revenue bonds of the district and the

imposition of an ad valorem tax on taxable property within the

area to be annexed along with a tax on the rest of the district

for the payment of the bonds.

(c) If the petitioners consent or if the election results

favorably, the district may issue its voted but unissued tax or

tax-revenue bonds regardless of changes to district boundaries

since the original voting or authorization of the bonds.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

SUBCHAPTER C. DISTRICT ADMINISTRATION

Sec. 8270.101. COMPOSITION OF BOARD. The board consists of five

elected directors.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.102. DIRECTOR'S BOND. Each director shall give bond

in the amount of $5,000 for the faithful performance of the

director's duties.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.103. DISTRICT OFFICE. (a) Except as provided by this

section, the board shall designate, establish, and maintain a

district office as provided by Section 49.062, Water Code.

(b) The board may establish a second district office outside the

district. If the board establishes a second district office, the

board shall give notice of the location of that office by:

(1) filing a copy of the board resolution that establishes the

location of the office:

(A) with the Texas Commission on Environmental Quality; and

(B) in the municipal utility district records of each county in

which the district is located; and

(2) publishing notice of the location of the office in a

newspaper of general circulation in each county in which the

district is located.

(c) A district office that is a private residence, office, or

dwelling is a public place for matters relating to district

business.

(d) The board shall provide notice of any change in the location

of the district office outside the district in the manner

required by Subsection (b).

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.104. ABSENCE OR INACTION OF BOARD PRESIDENT. (a)

When the board president is absent or fails or declines to act,

the board vice president shall perform all duties and exercise

all power this chapter or general law gives the president.

(b) If the board president is absent from a board meeting:

(1) the board vice president may:

(A) sign an order adopted at the meeting; or

(B) implement any other action taken at the meeting; or

(2) the board may authorize the president to sign the order or

implement the action.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 8270.151. MUNICIPAL UTILITY DISTRICT POWERS. The district

has all of the rights, powers, privileges, authority, and

functions conferred and imposed by the general laws of the state

relating to municipal utility districts created under Section 59,

Article XVI, Texas Constitution, including those conferred by

Chapters 49 and 54, Water Code.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.152. ADDITIONAL POWERS. (a) The district may:

(1) make, purchase, construct, lease, or otherwise acquire

property, works, facilities, existing improvements, or

improvements to be made, constructed, or acquired that are:

(A) inside or outside the district's boundaries; and

(B) necessary to carry out the powers granted by this chapter or

general law; or

(2) enter into a contract with a person on terms the board

considers desirable, fair, and advantageous for:

(A) the purchase or sale of water;

(B) the transportation, treatment, and disposal of the domestic,

industrial, or communal wastes of the district or others;

(C) the continuing and orderly development of land and property

in the district through the purchase, construction, or

installation of facilities, works, or improvements that the

district is otherwise authorized to do or perform so that, to the

greatest extent reasonably possible, considering sound

engineering and economic practices, all of the land and property

may ultimately receive the services of the facilities, works, or

improvements; and

(D) the performance of any of the powers granted by this chapter

or general law.

(b) A contract under Subsection (a)(2) may not have a duration

of more than 40 years.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.153. EMINENT DOMAIN. The district may exercise the

power of eminent domain only:

(1) in a county in which the district is located; and

(2) when necessary to carry out the purposes for which the

district was created.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.154. COST OF RELOCATING OR ALTERING PROPERTY. (a) In

this section, "sole expense" means the actual cost of relocating,

raising, lowering, rerouting, or changing the grade of or

altering the construction of a facility described by Subsection

(b) in providing comparable replacement without enhancement of

the facility, after deducting from that cost the net salvage

value of the old facility.

(b) If the district's exercise of the power of eminent domain,

the power of relocation, or any other power conferred by this

chapter makes necessary relocating, raising, rerouting, changing

the grade, or altering the construction of a highway, a railroad,

an electric transmission line, a telegraph or telephone property

or facility, or a pipeline, the necessary action shall be

accomplished at the sole expense of the district.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.155. CONTRACT FOR PURCHASE OF WATER, SEWER, OR

DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district may

enter into a contract with a political subdivision for water,

sewer, or drainage services or any combination of those services

without the necessity of an election by any contracting party.

(b) The district may pay for an obligation incurred by such a

contract by issuing bonds that, if otherwise necessary, have been

approved by the voters in the manner provided by this chapter.

(c) The district may deliver the district's bonds to any of the

following parties that enters into such a contract with the

district:

(1) the United States;

(2) an agency or instrumentality of the United States;

(3) this state; or

(4) an agency or instrumentality of this state.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.156. NOTICE OF ELECTION. The board president or

secretary may give notice of an election.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.157. DISTRICT RULES. The district shall adopt and

enforce reasonable and effective rules to secure and maintain

safe, sanitary, and adequate plumbing installations, connections,

and appurtenances as subsidiary parts of the district's sewerage

system to preserve the quality of water within or controlled by

the district.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 8270.201. TAX METHOD. (a) The board shall use the ad

valorem plan of taxation.

(b) The board is not required to hold a hearing on the adoption

of a plan of taxation.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.202. DISTRICT ACCOUNTS. The district shall keep a

complete system of the district's accounts.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.203. COPY OF AUDIT REPORT. A copy of the audit report

prepared under Subchapter G, Chapter 49, Water Code, shall be

delivered:

(1) to each director; and

(2) on request to a holder of at least 25 percent of the

outstanding bonds of the district.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.204. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The

district is not required to pay a tax or assessment on:

(1) district property; or

(2) a purchase made by the district.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.205. DEPOSITORY. (a) The board shall select one or

more banks in this state to act as depository for the district's

funds.

(b) To the extent that funds in the depository bank are not

insured by the Federal Deposit Insurance Corporation, the funds

must be secured in the manner provided by law for the security of

county funds.

(c) A director may be a shareholder in a depository of district

funds.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

SUBCHAPTER F. BONDS

Sec. 8270.251. ISSUANCE OF BONDS. (a) The district may issue

bonds payable from taxes or revenue to provide money for any

purpose of this chapter, including the acquisition of land.

(b) The district must issue bonds in the manner provided by

Chapters 49 and 54, Water Code, except that the district may

issue bonds payable solely from net revenue by resolution or

order of the board without an election.

(c) Bonds issued under this subchapter may be payable from all

or any designated part of the revenue of district property and

facilities or under a specific contract, as provided in the order

or resolution authorizing the issuance of bonds.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.252. ADDITIONAL SECURITY. (a) Within the discretion

of the board, bonds issued under this subchapter may be

additionally secured by a deed of trust or mortgage lien on

physical property of the district and franchises, easements,

water rights and appropriation permits, leases, contracts, and

all rights appurtenant to that property, vesting in the trustee

the power to:

(1) sell the property for payment of the debt;

(2) operate the property; and

(3) take any other action to secure the bonds.

(b) A purchaser under a sale under the deed of trust or mortgage

lien of the property:

(1) is the absolute owner of the property, facilities, and

rights purchased; and

(2) may maintain and operate the property and facilities.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.253. TRUST INDENTURE. A trust indenture created under

Section 8270.252, regardless of the existence of a deed of trust

or mortgage lien on the property, may:

(1) provide for the security of the bonds and the preservation

of the trust estate in the manner prescribed by the board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost or

mutilated bonds;

(4) condition the right to spend district money or sell district

property on the approval of a licensed engineer selected as

provided by the trust indenture; and

(5) provide for the investment of district money.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.254. ORDER OR RESOLUTION AUTHORIZING ISSUANCE OF

CERTAIN BONDS. (a) In an order or resolution authorizing the

issuance of revenue, tax-revenue, revenue refunding, or

tax-revenue refunding bonds, the board may:

(1) provide for:

(A) the flow of funds; and

(B) the establishment and maintenance of the interest and

sinking fund, reserve fund, or other fund;

(2) make additional covenants with respect to the bonds and the

pledged revenue and the operation and maintenance of the

improvements and facilities the revenue of which is pledged,

which may include provisions for the operation or leasing of all

or part of the improvements and facilities and the use or pledge

of money received from the operation contract or lease as the

board considers appropriate;

(3) prohibit the further issuance of bonds or other obligations

payable from the pledged revenue or reserve the right to issue

additional bonds to be secured by a pledge of and payable from

the revenue on a parity with, or subordinate to, the lien and

pledge in support of the bonds being issued, subject to any

conditions set forth in the order or resolution; and

(4) include any other provision or covenant not prohibited by

the Texas Constitution or this chapter.

(b) The board may adopt and execute any other proceeding or

instrument necessary or convenient in the issuance of the bonds.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.255. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a)

The district may appropriate or set aside out of the proceeds

from the sale of any bonds issued under this subchapter an amount

for the payment of interest, administrative, and operating

expenses expected to accrue during a period of construction, as

may be provided in the bond orders or resolutions.

(b) For purposes of this section, the period of construction may

not exceed three years.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.

Sec. 8270.256. REFUNDING BONDS. (a) By order or resolution

adopted by the board, the district may issue revenue refunding

bonds or tax-revenue refunding bonds to refund revenue bonds or

tax-revenue bonds, whether original bonds or refunding bonds,

previously issued by the district.

(b) The comptroller shall register the refunding bonds on the

surrender and cancellation of the bonds to be refunded.

(c) Instead of issuing bonds to be registered on the surrender

and cancellation of the bonds to be refunded, the district, in

the order or resolution authorizing the issuance of the refunding

bonds, may provide for the sale of the refunding bonds and the

deposit of the proceeds in the place or places where the bonds to

be refunded are payable. In that case, the refunding bonds may

be issued if an amount sufficient to pay the principal of and

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

to their option dates if according to their terms the bonds have

been called for payment before maturity, has been deposited in

the place or places where the bonds to be refunded are payable,

and the comptroller shall register the refunding bonds without

the surrender and cancellation of the bonds to be refunded.

Redesignated from Special District Local Laws Code, Chapter 9013

and amended by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.101, eff. September 1, 2009.