CHAPTER 8813. NORTH FORT BEND WATER AUTHORITY - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE H. DISTRICTS GOVERNING GROUNDWATER

CHAPTER 8813. NORTH FORT BEND WATER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8813.001. DEFINITIONS. In this chapter:

(1) "Authority" means the North Fort Bend Water Authority.

(2) "Board" means the board of directors of the authority.

(3) "Commission" means the Texas Commission on Environmental

Quality or its successor.

(4) "Director" means a member of the board.

(5) "District" means any district created under Sections

52(b)(1) and (2), Article III, or Section 59, Article XVI, Texas

Constitution, regardless of the manner of creation, other than:

(A) a navigation district or port authority;

(B) a district governed by Chapter 36, Water Code; or

(C) a district that does not have the legal authority to supply

water.

(6) "Groundwater reduction plan" means a plan adopted or

implemented to supply water, reduce reliance on groundwater,

regulate groundwater pumping and usage, or require and allocate

water usage among persons in order to comply with or exceed

requirements imposed by the Fort Bend Subsidence District or the

Harris-Galveston Coastal Subsidence District, as applicable,

including any applicable groundwater reduction requirements.

(7) "Local government" means a municipality, county, district,

or other political subdivision of this state or a combination of

two or more of those entities.

(8) "Person" includes an individual, corporation, organization,

government or governmental subdivision or agency, district, local

government, business trust, estate, trust, partnership,

association, and any other legal entity.

(9) "Subsidence" means the lowering in elevation of the surface

of land by the withdrawal of groundwater.

(10) "System" means a network of pipelines, conduits, valves,

canals, pumping stations, force mains, treatment plants, and any

other construction, device, or related appurtenance used to treat

or transport water.

(11) "Water" includes:

(A) groundwater, percolating or otherwise;

(B) any surface water, natural or artificial, navigable or

nonnavigable; and

(C) industrial and municipal wastewater.

(12) "Well" includes a facility, device, or method used to

withdraw groundwater from a groundwater source within the

boundaries of the authority.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.002. NATURE OF AUTHORITY. The authority is a regional

water authority in Fort Bend and Harris Counties created under

and essential to accomplish the purposes of Section 59, Article

XVI, Texas Constitution, including the acquisition and provision

of surface water and groundwater for residential, commercial,

industrial, agricultural, and other uses, the reduction of

groundwater withdrawals, the conservation, preservation,

protection, and recharge of groundwater and of groundwater

reservoirs or their subdivisions, the prevention of waste of

groundwater, the control of subsidence caused by the withdrawal

of water from groundwater reservoirs or their subdivisions, and

other public purposes stated in this chapter. The authority is a

political subdivision of this state.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.003. CONFIRMATION ELECTION NOT REQUIRED. An election

to confirm the creation of the authority is not required.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.004. INITIAL AUTHORITY TERRITORY. (a) The authority

is initially composed of the territory described by Section 2 of

the Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake made in the

field notes or in copying the field notes in the legislative

process does not affect:

(1) the organization, existence, or validity of the authority;

(2) the right of the authority to issue any type of bond or note

for the purposes for which the authority is created or to pay the

principal of and interest on a bond or note;

(3) the right of the authority to impose or collect a fee, user

fee, rate, charge, or special assessment; or

(4) the legality or operation of the authority.

(c) All of the territory of a local government created after the

effective date of the Act creating this chapter that encompasses

any territory within the boundaries of the authority, immediately

on the creation and without any action required of the authority,

is subject to all of the rights, powers, privileges, and rules of

the authority to the same extent as the territory was before the

local government was created.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.005. EXCLUSION OF CERTAIN TERRITORY. (a) A district

or municipality that, on the effective date of the Act creating

this chapter, is located, wholly or partly, within the territory

described by Section 2(a) or (b) of the Act creating this chapter

may petition for exclusion of all of its territory from the

authority's boundaries by a petition signed by a majority of the

members of the governing body of the district or municipality.

(b) The board shall:

(1) not later than the 120th day after the effective date of the

Act creating this chapter, grant the petition and order the

territory excluded if the petition:

(A) includes an accurate legal description of the boundaries of

the territory to be excluded; and

(B) is filed with the authority not later than the 60th day

after the effective date of the Act creating this chapter; and

(2) if the board grants the petition, file for recording in the

office of the county clerk for the applicable county or counties

a copy of the order and a description of the authority's

boundaries as they exist after the exclusion of the territory.

(c) If a district or municipality is excluded from the

authority's boundaries under this section, the authority is not

required to:

(1) provide water or any other service to the district or

municipality; or

(2) include the district or municipality in any groundwater

reduction plan adopted or implemented by the authority.

(d) If, not later than the 60th day after the effective date of

the Act creating this chapter, a district or municipality files a

petition for exclusion under this section, the authority may not

impose fees, user fees, rates, charges, or special assessments on

the district or municipality after the petition is filed with the

authority unless the district or municipality is annexed by the

authority under Section 8813.006.

(e) If a district or municipality excluded from the authority's

boundaries under this section petitions the authority to be

annexed under Section 8813.006, the authority may annex the

district or municipality. The authority may, as a condition of

annexation, require terms and conditions the board considers

appropriate. The authority may require the district or

municipality to pay the authority the fees, user fees, charges,

and special assessments, with interest, that, as determined by

the authority, the district or municipality would have been

charged by the authority if the district or municipality had not

been excluded from the authority under this section.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.006. ANNEXATION. (a) Except to the extent the

authority agrees in writing, a municipality's annexation of

territory within the authority does not affect:

(1) the authority's powers inside or outside the annexed

territory;

(2) the authority's boundaries or contracts; or

(3) the authority's ability to assess fees, user fees, rates,

charges, or special assessments inside or outside the territory

annexed by the municipality.

(b) Territory may be annexed to the authority, regardless of

whether the territory is contiguous to the authority, as provided

by Chapter 49, Water Code.

(c) In addition to the authority granted by Subsection (b),

regardless of whether the territory is contiguous to the

authority, the authority may annex some or all of the territory

located within a district or municipality if the district or

municipality files with the authority a petition requesting the

annexation signed by a majority of the members of the governing

body of the district or municipality. The petition must include

an accurate legal description of the boundaries of the territory

to be included. If the authority has bonds, notes, or other

obligations outstanding, the authority shall require the

petitioning district or municipality to be obligated to pay its

share of the principal of and interest on the outstanding bonds,

notes, or other obligations, and related costs. The board may

grant the petition and order the territory described by the

petition annexed to the authority if it is feasible, practicable,

and to the advantage of the authority.

(d) Any territory that a district located within the authority

annexes becomes territory of the authority on the effective date

of the annexation without any action required of the authority.

The authority by rule may require all districts located within

the authority to send to the authority written notice of the

effective date of an annexation and require the districts to send

to the authority copies of any necessary documents describing the

annexed land and describing the districts' boundaries as they

exist after inclusion of the annexed land.

(e) The annexation to the authority of territory under this

section does not affect the validity of the authority's bonds

issued before or after the annexation.

(f) A municipality that annexes territory of the authority for

limited purposes under Subchapter F, Chapter 43, Local Government

Code, does not have the right to:

(1) receive notices from the authority under Section

8813.103(c);

(2) participate in the appointment of directors under Subchapter

B; or

(3) receive information about or have the opportunity to fund

its share of capital costs in the manner provided by the

authority under Section 8813.104.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.007. APPLICABILITY OF OTHER LAW. (a) Except as

otherwise provided by this chapter, Chapter 49, Water Code,

applies to the authority.

(b) This chapter does not prevail over or preempt a provision of

Chapter 36, Water Code, Chapter 8801 of this code, or Chapter

1045, Acts of the 71st Legislature, Regular Session, 1989, that

is being implemented by the Harris-Galveston Coastal Subsidence

District or Fort Bend Subsidence District, as applicable.

(c) Chapter 36, Water Code, does not apply to the authority.

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

893, Sec. 1, eff. June 17, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

875, Sec. 1, eff. June 19, 2009.

Sec. 8813.008. FINDING OF BENEFIT. All the land, property, and

persons included within the boundaries of the authority will be

directly benefited by the works, projects, improvements, and

services to be provided by the authority under powers conferred

by Section 59, Article XVI, Texas Constitution, and this chapter.

The authority is created to serve a public use and benefit. The

creation of the authority will serve to promote the health,

safety, and general welfare of persons within the authority and

the general public. Any fees, user fees, rates, charges, or

special assessments imposed by the authority under this chapter

are necessary to pay for the costs of accomplishing the purposes

of the authority as set forth in Section 59, Article XVI, Texas

Constitution, and this chapter, including:

(1) the reduction of groundwater withdrawals;

(2) the facilitation of compliance with the requirements of the

Fort Bend Subsidence District or the Harris-Galveston Coastal

Subsidence District, as applicable; and

(3) the provision of services, facilities, and systems.

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

893, Sec. 1, eff. June 17, 2005.

SUBCHAPTER A-1. TEMPORARY PROVISIONS

For expiration of this subchapter, see Sec. 8813.022

Sec. 8813.021. INITIAL DIRECTORS. (a) The initial board

consists of:

Name of Director:

Representing Director Precinct:

David Spell

1

Robert Darden

2

Bruce Fay

3

Melony Gay

4

Robert Patton

5

Peter Houghton

6

Pat Hebert

7

(b) The directors for director precincts 1, 3, 5, and 7 shall

serve until the appointment of directors under Section 8813.056

in 2008. The directors for director precincts 2, 4, and 6 shall

serve until the appointment of directors under Section 8813.056

in 2010.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.022. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2010.

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

893, Sec. 1, eff. June 17, 2005.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8813.051. DIRECTORS; TERMS. (a) The authority is governed

by a board of seven directors.

(b) The directors serve staggered four-year terms that expire

May 15 of even-numbered years.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.052. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To be

eligible to serve as a director of the authority or to be listed

on a ballot as a candidate for director of the authority

representing a director precinct, an individual must:

(1) be at least 18 years of age;

(2) be a resident of the authority; and

(3) have served as a director of one or more districts for a

total of at least four years.

(b) Notwithstanding Subsection (a), to serve as a director

representing, or to be listed on a ballot as a candidate for

director representing, a director precinct that includes any part

of the City of Fulshear, an individual must:

(1) meet the qualifications provided by Subsections (a)(1) and

(2); and

(2) have served as:

(A) the mayor or a member of the city council of the City of

Fulshear for any period; or

(B) a director of one or more districts for a total of at least

four years.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.053. DISQUALIFICATION OF DIRECTORS. The common law

doctrine of incompatibility does not disqualify an official or

employee of a public entity from serving as a director of the

authority. A director who is also an officer or employee of a

public entity may not participate in the discussion of or vote on

a matter regarding a contract with that public entity.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.054. CONFLICTS OF INTEREST. Chapter 171, Local

Government Code, governs conflicts of interest of board members.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.055. SINGLE-MEMBER DIRECTOR PRECINCTS. (a) The

authority is divided into seven single-member director precincts,

as described by Section 3 of the Act creating this chapter.

(b) The board may redraw the single-member director precincts in

a manner that is reasonable and equitable:

(1) after any change in the boundaries of the authority; or

(2) by a resolution redrawing the director precincts adopted by

a two-thirds majority of the board based on changed

circumstances.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.056. METHOD OF APPOINTMENT OF DIRECTORS. (a) The

governing bodies of the districts and municipalities located

within each director precinct jointly shall appoint one director

to represent the precinct by a vote conducted as provided by this

section.

(b) If a district or municipality is located within two or more

director precincts, the district or municipality is considered,

for purposes of this section, to be located only within the

director precinct in which the greatest amount of territory of

the district or municipality is located.

(c) For the appointment of a director for a director precinct,

the board shall determine the number of votes each district or

municipality may cast. The number of votes for a governing body

of a district or municipality within the precinct is equal to the

number computed by dividing the total number of units of water,

as determined by the board, used within the precinct by the

district or municipality during the calendar year preceding the

year in which the director is selected by the total number of

units of water used within the precinct by all districts and

municipalities in the precinct, multiplying that quotient by 100,

and rounding that result to the nearest one-tenth. The board

shall provide the presiding officer of each governing body of a

district or municipality within each director precinct written

notice of the number of votes computed for that governing body to

cast.

(d) For purposes of Subsection (c), the board shall determine

the amount of water usage of all districts and municipalities

within each director precinct.

(e) In the appropriate even-numbered year, the governing body of

each district or municipality in a director precinct by

resolution may nominate one candidate for the position of

director for that director precinct. Each district or

municipality shall submit the name of its candidate, if any, to

the presiding officer of the authority by February 15 of that

year. If by February 15 of that year only one candidate's name

is submitted for the position of director for a director

precinct, the board may declare the unopposed candidate elected

and may cancel the director appointment procedures generally

required by this section for that position. If more than one

candidate's name is submitted for the position of director for a

director precinct, before March 15 of that year the board shall

prepare, for the director precinct or precincts from which a

director is being appointed, a ballot listing all of the

candidates for that director precinct and shall provide a copy of

the appropriate ballot to the presiding officer of the governing

body of each district or municipality located within the director

precinct from which a director is being appointed.

(f) An individual may not be listed as a candidate on the ballot

for more than one director position. If a candidate is nominated

for more than one director position, the candidate must choose to

be on the ballot for only one director position.

(g) The governing body of each district or municipality shall

determine its votes for director by resolution and submit them to

the presiding officer of the authority before May 1 of the

appropriate even-numbered year. In casting its votes for

director, the governing body of each district or municipality may

vote for only one candidate on the ballot for the director

precinct in which the district or municipality is located. For

each director precinct from which a director is being appointed,

the board shall count the votes, declare elected the candidate

who received the greatest number of votes from districts and

municipalities located within that director precinct, and submit

the results before May 15 of that year to the governing body of

each district or municipality within that director precinct.

(h) The board may adopt rules regarding:

(1) the manner and timing of determinations and calculations

required by this section;

(2) the reporting of water usage to the authority by districts

and municipalities; and

(3) the conduct and process of the appointment of directors.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.057. VACANCY IN OFFICE OF DIRECTOR. A vacancy in the

office of director shall be filled by appointment by the

governing bodies of the districts and municipalities that are

located within the director precinct for which the vacancy

occurred. The appointment process shall follow the procedures of

Section 8813.056. The board may establish dates different from

those specified by Sections 8813.056(e) and (g), but the date for

the board's submission of the voting results to each district and

municipality may not be later than the 120th day after the date

the vacancy occurs.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.058. MEETINGS AND ACTIONS OF BOARD. (a) The board

may meet as many times each year as the board considers

appropriate.

(b) Directors of the authority are public officials and are

entitled to governmental immunity for their actions in their

capacity as directors and officers of the authority.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.059. GENERAL MANAGER. (a) The board may employ a

general manager of the authority or contract with a person to

perform the duties of a general manager. The board may delegate

to the general manager full authority to manage and operate the

affairs of the authority subject only to orders of the board.

(b) The board may delegate to the general manager the authority

to employ all persons necessary for the proper handling of the

business and operation of the authority and to determine the

compensation to be paid to all employees, other than the general

manager.

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

893, Sec. 1, eff. June 17, 2005.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8813.101. GENERAL POWERS AND DUTIES. (a) The authority

may:

(1) provide for the conservation, preservation, protection,

recharge, and prevention of waste of groundwater, and for the

reduction of groundwater withdrawals as necessary to develop,

implement, or enforce a groundwater reduction plan, in a manner

consistent with the purposes of Section 59, Article XVI, Texas

Constitution, and facilitate compliance with Fort Bend Subsidence

District or Harris-Galveston Coastal Subsidence District, as

applicable, rules, orders, regulations, or requirements;

(2) acquire or develop surface water and groundwater supplies

from sources inside or outside the boundaries of the authority,

conserve, store, transport, treat, purify, distribute, sell, and

deliver water to or among persons inside and outside the

boundaries of the authority, and allocate water among persons

participating in the authority's groundwater reduction plan

whether they are located inside or outside the authority's

boundaries;

(3) enter into contracts with persons inside or outside the

authority on terms and conditions the board considers desirable,

fair, and advantageous for the performance of its rights, powers,

and authority under this chapter;

(4) coordinate water services provided inside, outside, or into

the authority;

(5) provide wholesale and retail water services to any users or

customers within the authority's boundaries without being

required to execute contracts with those users or customers;

(6) adopt policies establishing whether, when, and the manner in

which the authority uses requests for proposals in obtaining

services, including professional services;

(7) determine whether to adopt administrative policies in

addition to those required by Section 49.199, Water Code; and

(8) administer and enforce this chapter.

(b) Sections 49.451-49.455, Water Code, do not apply to the

authority.

(c) Notwithstanding Subsection (a)(5), the authority may not

provide retail water service to a retail user within the

authority's boundaries that is located within the boundaries of a

district or municipality on the date the authority awards a

contract for the construction or executes a contract for the

acquisition of water facilities to serve that retail user,

unless:

(1) the district or municipality consents in writing to the

authority's provision of retail water service; or

(2) the retail user owns or operates a well.

(d) If a retail user that does not own or operate a well is

added to the boundaries of a district or municipality after the

date the authority awards a contract for the construction or

executes a contract for the acquisition of water facilities to

serve that retail user, the authority may provide retail service

to that retail user without the written consent of the district

or municipality.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.102. AUTHORITY RULES. The authority may adopt and

enforce rules reasonably required to implement this chapter,

including rules governing procedures before the board and rules

regarding implementation, enforcement, and any other matters

related to the authority's water supply or groundwater reduction

plan.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.103. FEES, USER FEES, RATES, AND CHARGES. (a) The

authority may establish fees, user fees, rates, and charges and

classifications of payers of fees and rates as necessary to

enable the authority to fulfill the authority's purposes and

regulatory functions provided by this chapter. The authority may

impose fees, user fees, rates, and charges on any person within

the authority.

(b) The authority may charge the owner of a well located within

the authority's boundaries a fee or user fee according to the

amount of water pumped from the well. If ownership of a well

changes, both the prior and subsequent well owners are liable to

the authority, jointly and severally, for all fees and user fees

imposed by the authority under this subsection, and any related

penalties and interest, for water pumped from that well before

the change in well ownership.

(c) The board shall make reasonable efforts to send districts

and municipalities written notice of the date, time, and location

of the meeting at which the board intends to adopt a proposed

charge under Subsection (b) and the amount of the proposed

charge. The board's failure to comply with this subsection does

not invalidate a charge adopted by the board under Subsection

(b).

(d) For wells located in Harris County or Fort Bend County, the

board shall exempt from the charge under Subsection (b) classes

of wells that are not subject to any groundwater reduction

requirement imposed by the Harris-Galveston Coastal Subsidence

District or the Fort Bend Subsidence District, as applicable. If

any of those classes of wells become subject to a groundwater

reduction requirement imposed by the applicable subsidence

district, the authority may impose the charge under Subsection

(b) on those classes. The board by rule may exempt any other

classes of wells from the charge under Subsection (b). The board

may not apply the charge under Subsection (b) to a well:

(1) with a casing diameter of less than five inches that serves

only a single-family dwelling; or

(2) regulated under Chapter 27, Water Code.

(e) For purposes of Subsection (d), a well is subject to a

groundwater reduction requirement if the applicable subsidence

district has adopted or adopts a requirement or rule that

groundwater withdrawals from the well, or from the well and other

wells collectively, be reduced, including a groundwater reduction

that is not required until a future date.

(f) The authority may establish fees, user fees, rates, and

charges that are sufficient to:

(1) achieve water conservation;

(2) prevent waste of water;

(3) serve as a disincentive to pumping groundwater;

(4) develop, implement, or enforce a groundwater reduction plan;

(5) accomplish the purposes of this chapter, including making

available alternative water supplies;

(6) enable the authority to meet operation and maintenance

expenses;

(7) pay the principal of and interest on notes, bonds, and other

obligations issued in connection with the exercise of the

authority's general powers and duties; and

(8) satisfy all rate covenants relating to the issuance of

notes, bonds, and other obligations.

(g) The authority may charge rates established by the authority

for water purchased from the authority.

(h) The authority may impose fees, user fees, or charges for the

importation of water into the authority's boundaries from a

source located outside the authority's boundaries.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.104. PURCHASE OF WATER FROM ANOTHER ENTITY. (a) If

the authority purchases water from another entity for resale to

local governments, the authority shall use its best efforts in

negotiating with the entity to determine the amount of capital

costs included in any rates or charges paid by the authority.

The authority shall determine the amount of expected capital

costs of its own system.

(b) The authority shall provide each district or municipality

within its boundaries information regarding the share of the

capital costs to be paid by the district or municipality, as

determined by the authority, and shall provide each district or

municipality the opportunity, in a manner and by a procedure

determined by the authority, to fund its share of the capital

costs with proceeds from the sale of bonds or fees and charges

collected by the districts or municipalities. A district or

municipality may use any lawful source of revenue, including bond

funds, to pay any sums due to the authority.

(c) The authority may adopt a procedure by which a district or

municipality may receive a credit from the authority. The board

may adopt any other procedure necessary to accomplish the goals

of this section.

(d) In complying with this section, the authority may use any

reasonable basis to calculate from time to time the share of the

capital costs of a district or municipality. The authority may

calculate the shares of the capital costs based on the amount of

water used within the authority by the district or municipality

during the calendar year preceding the year in which the

calculation is made.

(e) This section or any failure to comply with this section does

not limit or impede the authority's ability to issue bonds or

notes or invalidate any fees, user fees, charges, rates, or

special assessments imposed by the authority.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.105. ASSESSMENTS. (a) The board may undertake

improvement projects and services that confer a special benefit

on all or a definable part of the authority. The board may

impose special assessments on property in that area, including

property of a local government, based on the benefit conferred by

the improvement project or services, to pay all or part of the

cost of the project and services. The board may provide

improvements and services to an area outside the boundaries of

the authority if the board determines that there is a benefit to

the authority. The authority may finance with special

assessments any improvement project or service authorized by this

chapter or any other applicable law.

(b) Services or improvement projects may be financed with

special assessments under this chapter only after the board holds

a public hearing on the advisability of the improvements and

services and the proposed assessments.

(c) The board shall publish notice of the hearing in a newspaper

or newspapers with general circulation in Harris and Fort Bend

Counties. The publication must be made not later than the 30th

day before the date of the hearing.

(d) Notice provided under this section must include:

(1) the time and place of the hearing;

(2) the general nature of the proposed improvement project or

services;

(3) the estimated cost of the improvement, including interest

during construction and associated financing costs; and

(4) the proposed method of assessment.

(e) Written notice containing the information required by

Subsection (d) shall be mailed by certified mail, return receipt

requested, not later than the 30th day before the date of the

hearing. The notice shall be mailed to each person within the

authority who holds a permit for a well issued by the

Harris-Galveston Coastal Subsidence District or Fort Bend

Subsidence District, as applicable, and whose well is subject to

a groundwater reduction requirement imposed by that district.

The Harris-Galveston Coastal Subsidence District and Fort Bend

Subsidence District shall provide to the authority a list of

persons who hold such a permit.

(f) The board may establish rules regarding procedures for a

hearing. A hearing on the services or improvement project,

whether conducted by the board or a hearings examiner, may be

adjourned from time to time. At the conclusion of a hearing

conducted by the board, the board shall make written findings and

conclusions relating to the advisability of the improvement

project or services, the nature of the improvement project or

services, the estimated cost, and the area benefited. If the

board appoints a hearings examiner to conduct the hearing, after

conclusion of the hearing, the hearings examiner shall file with

the board a written report of the examiner's findings and

conclusions.

(g) At a hearing on proposed assessments, on adjournment of the

hearing, or after consideration of the hearings examiner's

report, the board shall hear and rule on all objections to each

proposed assessment. The board may amend proposed assessments

for any property. After the board hears and takes action on

those objections, the board, by order:

(1) shall impose the assessments as special assessments on the

property;

(2) shall specify the method of payment of the assessments; and

(3) may provide that those assessments, including interest, be

paid in periodic installments.

(h) Periodic installments must be in amounts sufficient to meet

annual costs for services and improvements as provided by

Subsection (j) and continue for the number of years required to

retire the indebtedness or pay for the services to be rendered.

The board may provide interest charges or penalties for failure

to make timely payment and may impose an amount to cover

delinquencies and expenses of collection.

(i) If assessments are imposed for more than one service or

improvement project, the board may provide that assessments

collected for one service or improvement project may be borrowed

to be used for another service or improvement project. The board

shall establish a procedure for the distribution or use of any

assessments in excess of those necessary to finance the services

or improvement project for which those assessments were

collected.

(j) The board shall apportion the cost of an improvement project

or services to be assessed against the property in the authority

according to the special benefits that accrue to the property

because of the improvement project or services. The board may

assess the cost only according to the number of gallons of

groundwater pumped from wells within the authority that are

subject to a groundwater reduction requirement imposed by the

Harris-Galveston Coastal Subsidence District or Fort Bend

Subsidence District, as applicable. The board may not assess the

cost according to groundwater pumped from:

(1) a well with a casing diameter of less than five inches that

serves only a single-family dwelling; or

(2) a well that is regulated by Chapter 27, Water Code.

(k) The area of the authority to be assessed according to the

findings of the board may be the entire authority or any part of

the authority and may be less than the area proposed in the

notice of the hearing.

(l) The area to be assessed may not include property that is not

within the authority boundaries at the time of the hearing unless

there is an additional hearing, following the required notice.

(m) Notwithstanding Subsection (l), the owner of land annexed to

the authority after the authority has imposed assessments may

waive the right to notice and an assessment hearing and may agree

to the imposition and payment of assessments at an agreed rate

for land annexed to the authority. A district or municipality

may waive the right to notice and an assessment hearing for land

within its boundaries annexed to the authority and may agree to

the imposition and payment of assessments at an agreed rate for

the annexed land.

(n) The board shall have prepared an assessment roll showing the

assessments against each property and the board's basis for the

assessment. The assessment roll shall be:

(1) filed with the secretary of the board or other officer who

performs the function of secretary; and

(2) open for public inspection.

(o) After notice and hearing in the manner required for an

original assessment, the board may make supplemental assessments

to correct omissions or mistakes in the assessment:

(1) relating to the total cost of the improvement project or

services; or

(2) covering delinquencies or costs of collection.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.106. INTEREST AND PENALTIES. The board may require

the payment of interest on any late or unpaid fees, user fees,

rates, charges, and special assessments due the authority, but

the interest rate may not exceed the interest rate permitted by

Section 2251.025, Government Code. The board may also impose

penalties for the failure to make a complete or timely payment to

the authority. In addition, the board may exclude a person, or

any territory or well owned or controlled by a person, from the

authority's groundwater reduction plan for failure to make a

complete or timely payment to the authority.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.107. ATTORNEY'S FEES AND COLLECTION EXPENSES. (a)

The authority is entitled to reasonable attorney's fees incurred

by the authority in enforcing its rules.

(b) The authority is entitled to collection expenses and

reasonable attorney's fees incurred by the authority in

collecting any delinquent fees, user fees, rates, and charges and

any related penalties and interest.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.108. LIEN. (a) Fees and user fees imposed by the

authority under Section 8813.103(b), any related penalties and

interest, and collection expenses and reasonable attorney's fees

incurred by the authority:

(1) are a first and prior lien against the well to which the

fees or user fees apply;

(2) are superior to any other lien or claim other than a lien or

claim for county, school district, or municipal ad valorem taxes;

and

(3) are the personal liability of and a charge against the owner

of the well.

(b) A lien under this section is effective from the date of the

resolution or order of the board imposing the fee or user fee

until the fee or user fee is paid.

(c) The board may enforce the lien in the same manner that a

municipal utility district operating under Chapter 54, Water

Code, may enforce an ad valorem tax lien against real property.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.109. ADMINISTRATIVE PENALTY; INJUNCTION. (a) A

person who violates a rule or order of the authority is subject

to an administrative penalty of not more than $5,000, as

determined by the board, for each violation or each day of a

continuing violation. The person shall pay the penalty to the

authority.

(b) The authority may bring an action to recover the penalty in

a district court in the county where the violation occurred.

(c) The authority may bring an action for injunctive relief in a

district court in the county where a violation of an authority

rule or order occurs or is threatened to occur. The court may

grant to the authority, without bond or other undertaking, a

prohibitory or mandatory injunction that the facts warrant,

including a temporary restraining order, temporary injunction, or

permanent injunction.

(d) The authority may bring an action for an administrative

penalty and injunctive relief in the same proceeding.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.110. WATER SUPPLY OR DROUGHT CONTINGENCY PLANS. The

authority by rule may develop, prepare, revise, adopt, implement,

enforce, and manage comprehensive water supply or drought

contingency plans for the authority, or any portion of the

authority.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.111. GROUNDWATER REDUCTION PLAN. (a) The authority

may wholly or partly develop, prepare, revise, adopt, implement,

enforce, manage, or participate in a groundwater reduction plan

that is applicable only to the authority and one or more persons

outside the authority. The authority may require that any

groundwater reduction plan that the authority wholly or partly

develops, prepares, revises, adopts, implements, enforces, or

manages or in which the authority participates be the exclusive

groundwater reduction plan that is binding and mandatory on some

or all of the territory, persons, or wells located within the

authority. A groundwater reduction plan may:

(1) specify the measures to be taken to reduce groundwater

withdrawals;

(2) identify alternative sources of water, including water from

the authority, to be provided to those affected;

(3) identify the rates, terms, and conditions under which

alternative sources of water will be provided, which may be

changed from time to time as considered necessary by the

authority;

(4) specify the dates and extent to which persons or districts

within the authority's boundaries shall reduce or cease reliance

on groundwater and accept water from alternative sources,

including water from the authority;

(5) include other terms and measures that are consistent with

the powers and duties of the authority;

(6) exceed the minimum requirements imposed by the

Harris-Galveston Coastal Subsidence District or Fort Bend

Subsidence District, as applicable, including any applicable

groundwater reduction requirements; and

(7) be amended from time to time at the discretion of the

authority.

(b) Fees, user fees, rates, charges, and special assessments of

the authority may be imposed under this chapter for a person's

participation in and benefit derived from the authority's

groundwater reduction plan or a groundwater reduction plan in

which the authority participates.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.112. ACQUISITION, CONSTRUCTION, AND OPERATION OF

SYSTEMS. (a) The authority may:

(1) acquire by purchase, gift, lease, contract, or any other

legal means a water treatment or supply system, or any other

works, plants, improvements, or facilities necessary or

convenient to accomplish the purposes of the authority, or any

interest of the authority, inside or outside the authority's

boundaries;

(2) design, finance, operate, maintain, or construct a water

treatment or supply system or any other works, plants,

improvements, or facilities necessary or convenient to accomplish

the purposes of the authority and provide water services inside

or outside the authority's boundaries;

(3) lease or sell a water treatment or supply system or any

other works, plants, improvements, or facilities necessary or

convenient to accomplish the purposes of the authority that the

authority constructs or acquires inside or outside the

authority's boundaries;

(4) contract with any person to operate or maintain a water

treatment or supply system the person owns; or

(5) acquire water rights under any law or permit.

(b) The authority may contract, according to terms and

conditions the board considers desirable, fair, and advantageous,

with a person outside the authority's boundaries:

(1) to allow the person, or the person's well, to be included in

a groundwater reduction plan adopted or implemented wholly or

partly by the authority or in a groundwater reduction plan in

which the authority participates;

(2) to sell water to the person; or

(3) to sell the person available excess capacity or additional

capacity of the authority's water treatment or supply system.

(c) The authority by rule may require that the plans and

specifications of water lines to be constructed within the

authority that are designed or intended to serve more than one

district or more than one person owning or holding a well permit

issued by the Harris-Galveston Coastal Subsidence District or

Fort Bend Subsidence District, as applicable, be approved by the

authority before the commencement of construction of the water

lines.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.113. SALE OR REUSE OF WATER OR BY-PRODUCT. The

authority may store, sell, or reuse:

(1) water; or

(2) any by-product from the authority's operations.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.114. CONTRACTS. (a) The authority may enter into a

contract with a person for the performance of a purpose or

function of the authority, including a contract to design,

construct, finance, lease, own, manage, operate, or maintain

works, improvements, facilities, plants, equipment, or appliances

necessary to accomplish a purpose or function of the authority.

A contract may be of unlimited duration.

(b) The authority may purchase, acquire, finance, or lease an

interest in a project used for a purpose or function of the

authority.

(c) The authority may contract for:

(1) the purchase, sale, or lease of water or water rights;

(2) the performance of activities within the powers of the

authority through the purchase, construction, or installation of

works, improvements, facilities, plants, equipment, or

appliances; or

(3) the design, construction, ownership, management,

maintenance, or operation of any works, improvements, facilities,

plants, equipment, or appliances of the authority or another

person.

(d) The authority may purchase surplus property from this state,

the United States, or another public entity through a negotiated

contract without bids.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.115. COOPERATION WITH AND ASSISTANCE OF OTHER

GOVERNMENTAL ENTITIES. (a) In implementing this chapter, the

board may cooperate with and request the assistance of the Texas

Water Development Board, the commission, the United States

Geological Survey, the Fort Bend Subsidence District, other local

governments, and other agencies of the United States and this

state.

(b) The Fort Bend Subsidence District may enter into an

interlocal contract with the authority to carry out the

authority's purposes and may carry out the governmental functions

and services specified in the interlocal contract.

(c) In an attempt to minimize costs associated with preparing a

groundwater reduction plan, the board may consider the usefulness

of water supply studies and plans prepared by or on behalf of the

North Harris County Regional Water Authority, the West Harris

County Regional Water Authority, the City of Houston, or other

governmental entities to the extent those studies or plans are

available and applicable to the authority.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.116. GIFTS AND GRANTS. The authority may accept a

gift or grant from money collected by the Fort Bend Subsidence

District to fund the construction, maintenance, or operation of a

water treatment or supply system.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.117. EXPENDITURES. (a) The authority's money may be

disbursed only by check, draft, order, federal reserve wire

system, or other instrument or authorization.

(b) Disbursements of the authority must be signed by at least a

majority of the directors. The board by resolution may allow the

general manager, treasurer, bookkeeper, or other employee of the

authority to sign disbursements, except as limited by Subsection

(c).

(c) The board by resolution may allow disbursements to be

transferred by federal reserve wire system to accounts in the

name of the authority without the necessity of any directors

signing the disbursement. Disbursements of the authority's money

by federal reserve wire system to any accounts not in the name of

the authority must be signed by at least a majority of the

directors.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.118. AD VALOREM TAXATION. The authority may not

impose an ad valorem tax.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.119. EMINENT DOMAIN. (a) The authority may acquire

by condemnation any land, easements, or other property inside the

authority's boundaries to further authorized purposes, powers, or

duties of the authority. The authority may acquire by

condemnation any land, easements, or other property outside the

authority's boundaries for the purposes of pumping, storing,

treating, or transporting water. When exercising the power of

eminent domain granted by this section, the authority may elect

to condemn either the fee simple title or a lesser property

interest.

(b) The authority shall exercise the right of eminent domain in

the manner provided by Chapter 21, Property Code. The authority

is not required to give bond for appeal or bond for costs in a

condemnation suit or other suit to which it is a party. The

authority is not required to deposit more than the amount of an

award in a suit.

(c) The authority may not use the power of eminent domain for

the condemnation of land for the purpose of acquiring rights to

groundwater or for the purpose of acquiring water or water

rights.

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

893, Sec. 1, eff. June 17, 2005.

Sec. 8813.120. ACTION AGAINST PERSON, DISTRICT, OR POLITICAL

SUBDIVISION. (a) The authority may bring an action in a

district court against a person, including a district or other

political subdivision located in the authority's territory or

included in the authority's groundwater reduction plan, to:

(1) recover any fees, rates, charges, assessments, collection

expenses, attorney's fees, interest, penalties, or administrative

penalties due the authority; or

(2) enforce the authority's rules or orders.

(b) Governmental immunity from suit or liability of a district

or other political subdivision is waived for the purposes of an

action under this section.

Added by Acts 2009, 81st Leg., R.S., Ch.

875, Sec. 2, eff. June 19, 2009.

SUBCHAPTER D. BONDS AND NOTES

Sec. 8813.151. REVENUE BONDS AND NOTES. (a) The authority may

issue bonds or notes payable solely from revenue from any source,

including:

(1) tolls, charges, rates, fees, user fees, and special

assessments the authority imposes or collects;

(2) the sale of water, water services, water rights or capacity,

water transmission rights or services, water pumping, or any

other service or product of the authority provided inside or

outside the boundaries of the authority;

(3) grants or gifts;

(4) the ownership or operation of all or a designated part of

the authority's works, improvements, facilities, plants, or

equipment; and

(5) contracts between the authority and any person.

(b) Notes issued by the authority may be first or subordinate

lien notes at the board's discretion.

(c) In connection with any bonds or notes of the authority, the

authority may exercise any power of an issuer under Chapter 1371,

Government Code.

(d) The authority may conduct a public, private, or negotiated

sale of the bonds or notes.

(e) The authority may enter into one or more indentures of trust

to further secure its bonds or notes.

(f) The authority may issue bonds or notes in more than one

series as necessary to carry out the purposes of this chapter.

In issuing bonds or notes secured by revenue of the authority,

the authority may reserve the right to issue additional bonds or

notes secured by the authority's revenue that are on a parity

with or are senior or subordinate to the bonds or notes issued

earlier.

(g) A resolution of the board authorizing the bonds or notes or

a trust indenture securing the bonds or notes may specify

additional provisions that constitute a contract between the

authority and its bondholders or noteholders.

(h) Bonds and notes may be additionally secured by deed of trust

or mortgage on any or all of the authority's facilities.

(i) The authority may issue refunding bonds or notes to refund

any of its bonds or notes in any manner provided by law.

(j) Sections 49.153, 49.154, and 49.181, Water Code, do not

apply to bonds or notes issued by the authority. Commission

rules regarding bonds or notes do not apply to bonds or notes

issued by the authority.

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

893, Sec. 1, eff. June 17, 2005.