CHAPTER 8815. CENTRAL HARRIS COUNTY REGIONAL WATER AUTHORITY - Texas Statutes

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE H. DISTRICTS GOVERNING GROUNDWATER

CHAPTER 8815. CENTRAL HARRIS COUNTY REGIONAL WATER AUTHORITY

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8815.001. DEFINITIONS. In this chapter:

(1) "Authority" means the Central Harris County Regional 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; or

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

(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 subsidence district, 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) "Member district" means each of the following conservation

and reclamation districts created under Section 59, Article XVI,

Texas Constitution:

(A) Harris County Municipal Utility District No. 33;

(B) Harris County Municipal Utility District No. 150;

(C) Harris County Municipal Utility District No. 200;

(D) Harris County Municipal Utility District No. 205;

(E) Harris County Municipal Utility District No. 215;

(F) Harris County Municipal Utility District No. 217;

(G) Harris County Municipal Utility District No. 304;

(H) Harris County Municipal Utility District No. 399;

(I) Harris County Utility District No. 16;

(J) Fallbrook Utility District; and

(K) Rankin Road West Municipal Utility District.

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

of land by the withdrawal of groundwater.

(10) "Subsidence district" means the Harris-Galveston Coastal

Subsidence District.

(11) "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.

(12) "Water" includes:

(A) groundwater, percolating or otherwise;

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

nonnavigable; and

(C) industrial and municipal wastewater.

(13) "Well" includes a facility or device owned or partially

owned by a member district and used to withdraw groundwater from

a groundwater source inside or outside the boundaries of the

authority for the purpose of supplying water to territory in the

authority.

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

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

Sec. 8815.002. NATURE OF AUTHORITY. The authority is a regional

water authority in Harris County created under and essential to

accomplish the purposes of Section 59, Article XVI, Texas

Constitution.

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

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

Sec. 8815.003. CONFIRMATION ELECTION NOT REQUIRED. An election

to confirm the creation of the authority is not required.

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

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

Sec. 8815.004. AUTHORITY TERRITORY. (a) The initial territory

of the authority consists of the combined territories of each of

the member districts as of the effective date of the law creating

this chapter, regardless of whether the territory contains

noncontiguous parcels of land or whether the territory is located

within the boundaries of any other governmental entity or

political subdivision of this state.

(b) The authority may annex additional territory under Section

8815.006.

(c) Territory may be excluded from the authority under Section

8815.005.

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

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

Sec. 8815.005. EXCLUSION OF CERTAIN TERRITORY. (a) On the

mutual agreement of the board and the governing body of a member

district, all of the land within that member district may be

excluded from the authority.

(b) If a member district is excluded from the authority's

boundaries under this section, the authority:

(1) is not required to provide water or any other service to the

district; and

(2) is not required to include the district in any groundwater

reduction plan adopted or implemented by the authority and may

remove the district from any groundwater reduction plan adopted

by the authority that includes the district.

(c) If a member district excluded from the authority's

boundaries under this section petitions the authority to be

annexed under Section 8815.006, the authority may annex the

district. The authority may require, as a condition of

annexation, terms and conditions the board considers appropriate.

The authority may require the district to pay the authority the

fees, user fees, charges, and special assessments, with interest,

that, as determined by the authority, the district would have

been charged by the authority if the district had not been

excluded from the authority under this section.

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

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

Sec. 8815.006. 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 within the authority annexed by a municipality may

be excluded from the authority under a written agreement between

the authority and the municipality.

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

whether the territory is contiguous to the authority, as provided

by Chapter 49, Water Code.

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

regardless of whether the territory is contiguous to the

authority, the authority may annex all of the territory located

within a district if the district files with the authority a

petition requesting the annexation signed by a majority of the

members of the governing body of the district. The petition must

include an accurate legal description of the boundaries of the

district. If the authority has bonds, notes, or other

obligations outstanding, the authority shall require the

petitioning district 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 authority may also

require the petitioning district to pay a portion of the expenses

incurred by the member districts in connection with the

organization, creation, and administration of the authority. The

board may grant the petition and order the district annexed to

the authority if:

(1) it is feasible, practicable, and to the advantage of the

authority; and

(2) the authority's system and other improvements are sufficient

or will be sufficient to supply surface water and groundwater to

the added territory, if required under any groundwater reduction

plan adopted and implemented by the authority, without harming

the territory already included in the authority.

(e) Any territory that a member district annexes after the

effective date of the Act creating this chapter becomes territory

of the authority only on the adoption of an order or resolution

by the board consenting to the inclusion of the additional

territory within the authority. The authority by rule may

require all member districts to send to the authority written

notice of the effective date of an annexation and require the

member districts to send to the authority copies of any necessary

documents describing the annexed land and describing the member

districts' boundaries and actual and projected water usage

requirements as they exist after inclusion of the annexed land.

(f) 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.

(g) 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

8815.103(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 8815.104.

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

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

Sec. 8815.007. 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, or Chapter 8801 of this code that is

being implemented by the subsidence district.

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

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

SUBCHAPTER A-1. TEMPORARY PROVISIONS

For expiration of this subchapter, see Sec. 8815.022

Sec. 8815.021. INITIAL DIRECTORS. (a) The initial board

consists of:

Name of Director:

Representing Director Precinct:

Margaret Cox

1

Judge Caston

2

Barbara Hays

3

Julian Boddy

At large

James A. Johnson

At large

(b) At the first meeting of the initial board, or as soon as

practicable after that meeting, the directors shall draw lots to

determine:

(1) their terms so that:

(A) three directors, including one at-large position, serve

until the first appointment of directors under Section 8815.055

in 2006; and

(B) two directors, including one at-large position, serve until

the second appointment of directors under Section 8815.055 in

2008; and

(2) which two director precincts appoint a director in the first

even-numbered year in which directors are appointed under Section

8815.055.

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

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

Sec. 8815.022. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2010.

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

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

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8815.051. DIRECTORS; TERMS. (a) The authority is governed

by a board of five directors.

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

May 15 of even-numbered years.

(c) Each director must qualify to serve as director in the

manner provided by Section 49.055, Water Code.

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

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

Sec. 8815.052. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To be

eligible to serve as a director or to be listed on a ballot as a

candidate for director, an individual must:

(1) be at least 18 years of age;

(2) be a resident of this state;

(3) own land in or be a qualified voter in the authority; and

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

total of at least two years.

(b) To be eligible to serve as a director representing a

director precinct or to be listed on a ballot as a candidate for

director representing a director precinct under Section 8815.055,

in addition to satisfying the requirements under Subsection (a),

an individual must own land or be a qualified voter within the

director precinct.

(c) A director serves until the director's successor has

qualified.

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

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

Sec. 8815.053. 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.

Notwithstanding any other law, a director may participate in all

votes and decisions pertaining to the business of the authority

except that 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.

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

Sec. 8815.054. SINGLE-MEMBER DIRECTOR PRECINCTS. (a) The

authority is divided into three single-member director precincts

as follows:

(1) Director Precinct No. 1 includes the territory that is

contained in the following member districts: Harris County

Municipal Utility District No. 33, Fallbrook Utility District,

Rankin Road West Municipal Utility District, and Harris County

Municipal Utility District No. 215.

(2) Director Precinct No. 2 includes the territory that is

contained in the following member districts: Harris County

Municipal Utility District No. 150, Harris County Municipal

Utility District No. 217, and Harris County Municipal Utility

District No. 304.

(3) Director Precinct No. 3 includes the territory that is

contained in the following member districts: Harris County

Municipal Utility District No. 200, Harris County Municipal

Utility District No. 205, Harris County Municipal Utility

District No. 399, and Harris County Utility District No. 16.

(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 majority of the board based on changed circumstances.

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

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

Sec. 8815.055. METHOD OF APPOINTMENT OF DIRECTORS. (a) One

director is appointed from each of the three director precincts

and two directors are appointed at large. Two directors from

director precincts and one director at large shall be appointed

in the first even-numbered year after the authority is created,

and one director from a director precinct and one director at

large shall be appointed in the next even-numbered year after the

authority is created. Each subsequent even-numbered year, the

appropriate number of directors shall be appointed.

(b) In the appropriate even-numbered year, the governing bodies

of the member districts located within a director precinct

jointly shall appoint one director to represent the precinct by a

vote conducted as provided by this section. Each even-numbered

year, the governing bodies of each member district shall appoint

one director for an at-large position by a vote conducted as

provided by this section.

(c) If a member district is located within two or more director

precincts, the member district is considered, for purposes of

this subchapter, to be located only within the director precinct

in which the greatest amount of territory of the member district

is located.

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

the board shall determine the number of votes each member

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

member district 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 member district during

the calendar year preceding the year in which the director is

selected by the total number of units of water used by all member

districts 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 member

district within each director precinct written notice of the

number of votes computed for that governing body to cast.

(e) For the appointment of a director for an at-large position,

the board shall determine the number of votes each member

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

member district is equal to the number computed by dividing the

total number of units of water, as determined by the board, used

within the member district during the calendar year preceding the

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

units of water used by all member districts in the authority,

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 member district written notice of the

number of votes computed for that governing body to cast.

(f) For purposes of Subsections (d) and (e), the board shall

determine the amount of water usage of all member districts

within each director precinct.

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

each member district in a director precinct by resolution may

nominate one candidate for the position of director for that

director precinct. Each member district 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 member district located

within the director precinct or precincts from which a director

is being appointed.

(h) The governing body of each member district in the authority

by resolution may nominate one candidate for the at-large

director position. Each member district shall submit the name of

its candidate, if any, to the presiding officer of the authority

by February 15 of each even-numbered year. If by February 15 of

that year only one candidate's name is submitted for the at-large

director position, 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 at-large director

position, before March 15 of that year, the board shall prepare a

ballot listing all of the candidates for the at-large director

position and shall provide a copy of the ballot to the presiding

officer of the governing body of each member district.

(i) 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.

(j) The governing body of each member district shall determine

its votes for director by resolution and submit them to the

presiding officer of the authority before May 1 of each

even-numbered year. In casting its votes for director, the

governing body of each member district may vote for only one

candidate on the ballot for the director precinct in which the

member district is located and for one candidate on the at-large

position ballot. 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 member districts located within that director

precinct, and submit the results before May 15 of that year to

the governing body of each member district within that director

precinct. For the at-large position, the board shall count the

votes, declare elected the candidate who received the greatest

number of votes, and submit the results before May 15 of that

year to the governing body of each member district.

(k) The board may adopt rules regarding:

(1) the manner and timing of determinations and computations

required by this section;

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

districts; and

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

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

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

Sec. 8815.056. VACANCY IN OFFICE OF DIRECTOR. A vacancy in the

office of director for a director precinct shall be filled by

appointment by the governing bodies of the member districts that

are located within the director precinct for which the vacancy

occurred. A vacancy in the office of director for an at-large

position shall be filled by appointment by the governing bodies

of all of the member districts. The appointment process shall

follow the procedures of Section 8815.055. The board may

establish dates different from those specified by Sections

8815.055(g) and (h), but the date for the board's submission of

the voting results to each member district may not be later than

the 120th day after the date the vacancy occurs.

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

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

Sec. 8815.057. MEETINGS AND ACTIONS OF BOARD. (a) The board

may meet as many times each year as the board considers

appropriate.

(b) Directors are public officials and are entitled to

governmental immunity for their actions in their capacity as

directors and officers of the authority.

(c) Directors may receive fees of office and reimbursement of

expenses as provided by Section 49.060, Water Code.

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

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

Sec. 8815.058. 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.

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8815.101. 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 subsidence district

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; and

(5) administer and enforce this chapter.

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

authority.

(c) The authority has all the rights, powers, privileges,

authority, functions, and duties necessary and convenient to

accomplish the purposes of this chapter.

(d) The authority's rights, powers, privileges, authority,

functions, and duties are subject to the continuing right of

supervision of the state, to be exercised by and through the

commission.

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

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

Sec. 8815.102. 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.

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

Sec. 8815.103. 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.

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

districts 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) 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 subsidence district. If any

of those classes of wells become subject to a groundwater

reduction requirement imposed by the 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) 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.

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

for water purchased from the authority.

(g) 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.

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

Sec. 8815.104. 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 member district information

regarding the share of the capital costs to be paid by the member

district, as determined by the authority, and shall provide each

member district 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 member districts. A member district may use any

lawful source of revenue, including bond funds, to pay any sums

due to the authority.

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

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

Sec. 8815.105. 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 County. 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 member district.

The subsidence district shall provide to the authority a list of

the member districts that hold a well permit issued by the

subsidence district.

(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

subsidence district. 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 member district 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.

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

Sec. 8815.106. 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 member

district or other person, or any territory or well owned or

controlled by a member district or other 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.

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

Sec. 8815.107. 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.

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

Sec. 8815.108. 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.

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

Sec. 8815.109. GROUNDWATER REDUCTION PLAN. (a) Notwithstanding

any other law, regardless of whether the authority enters into

contracts with local governments located within its boundaries,

and regardless of whether the authority holds any well permit

issued by the subsidence district under Chapter 8801, the

authority by rule 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 or a groundwater reduction plan that is applicable 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, member districts or other 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 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 member districts or

other persons within the authority's boundaries shall reduce or

cease reliance on groundwater and accept water from alternative

sources;

(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 subsidence

district, 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.

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

Sec. 8815.110. 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) Except as otherwise provided by this chapter, the provisions

of Chapter 49, Water Code, pertaining to competitive bidding

apply to the authority.

(c) 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 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.

(d) 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

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

permit issued by the subsidence district be approved by the

authority before the commencement of construction of the water

lines.

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

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

Sec. 8815.111. 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.

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

Sec. 8815.112. 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.

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

Sec. 8815.113. 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 subsidence district, other local

governments, and other agencies of the United States and this

state.

(b) The 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) The board shall endeavor to coordinate with the City of

Houston to develop a plan for a system to distribute surface

water in an economical and efficient manner to the authority.

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

groundwater reduction plan, the board shall 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.

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

Sec. 8815.114. GIFTS AND GRANTS. The authority may accept a

gift or grant from money collected by the subsidence district

under Chapter 8801 to fund the construction, maintenance, or

operation of a water treatment or supply system.

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

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

Sec. 8815.115. 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. Notwithstanding any other law, 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.

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

Sec. 8815.116. AD VALOREM TAXATION. The authority may not

impose an ad valorem tax.

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

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

Sec. 8815.117. 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 purpose 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.

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

the condemnation of property that is:

(1) owned by the City of Houston or any instrumentality of the

City of Houston, including a local government corporation created

under Chapter 431, Transportation Code, to aid or act on behalf

of the City of Houston; or

(2) located within the municipal limits of the City of Houston.

(e) Notwithstanding Subsection (d)(2), and as limited by

Subsection (a), the authority may use the power of eminent domain

to acquire property that is not owned by the City of Houston that

is within the municipal limits of the City of Houston if:

(1) the property is located in an area of the municipality that

is less than 1,000 feet wide at its narrowest point; or

(2) the municipality grants permission for the condemnation.

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

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

Sec. 8815.118. CONSENT REQUIRED FOR SERVICE OUTSIDE OF

AUTHORITY. (a) Notwithstanding any contrary provision of this

subchapter, the authority must obtain the consent of the City of

Houston before providing water service to any person or territory

outside the boundaries of the authority.

(b) Subsection (a) does not apply to a person or territory that

receives water service or has contracted to receive water service

from a member district on the effective date of the Act creating

this chapter.

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

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

SUBCHAPTER D. BONDS AND NOTES

Sec. 8815.151. 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) 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.

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