CHAPTER 4A. SANITATION AND HEALTH PROTECTION - Texas Statutes

VERNON'S CIVIL STATUTES

TITLE 71. HEALTH--PUBLIC

CHAPTER 4A. SANITATION AND HEALTH PROTECTION

Art. 4477-7j. GAINES COUNTY SOLID WASTE MANAGEMENT ACT.

ARTICLE 1. GENERAL PROVISIONS

Purpose

Sec. 1.01. The purpose of this Act is to establish an

instrumentality to develop and carry out for Gaines County a

regional water quality protection program through solid waste

management and regulation of waste disposal in accordance with

state law.

Findings and declaration of policy

Sec. 1.02. (a) The legislature finds that:

(1) the quality of water in Gaines County may be materially

affected by the management of solid waste throughout the county;

(2) a countywide or regional effort to provide for the management

of solid waste in accordance with state and federal law is far

more effective than each incorporated or unincorporated community

providing solid waste management services;

(3) solid waste, as well as other waste, may impair water quality

by seepage or drainage; and

(4) creation of the Gaines County Solid Waste Management District

would advance the established policy of this state to maintain

the quality of the water in the state consistent with:

(A) the public health and public enjoyment;

(B) the propagation and protection of terrestrial and aquatic

life;

(C) the operation of existing industries; and

(D) the economic development of the state.

(b) The legislature finds that this Act is in compliance with

Article XVI, Sections 59(d) and (e), of the Texas Constitution

and that the legislature has the power and authority to enact

this Act.

(c) The legislature finds that all of the area included in the

district is benefited by the exercise of the power conferred by

this Act.

Definitions

Sec. 1.03. In this Act:

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

(2) "Commission" means the Texas Water Commission.

(3) "County" means Gaines County, Texas.

(4) "Department" means the Texas Department of Health.

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

(6) "District" means the Gaines County Solid Waste Management

District created under this Act.

(7) "Industrial solid waste" has the meaning assigned by Section

361.003, Health and Safety Code.

(8) "Local government" means an incorporated municipality, a

county, or a water or other special district or authority acting

under Article III, Sections 52(b)(1) and (2), or Article XVI,

Section 59, of the Texas Constitution.

(9) "Municipal solid waste" has the meaning assigned by Section

361.003, Health and Safety Code.

(10) "Outside the district" means the area contained in counties

adjacent to the district.

(11) "Person" means an individual, public or private corporation,

political subdivision, governmental agency, municipality,

copartnership, association, firm, trust, estate, or any other

legal entity.

(12) "Resource recovery facility" means a facility used to store,

handle, sort, bail, recycle, process, and recover solid waste.

(13) "Rule" includes regulation.

(14) "Sewage" has the meaning assigned by Section 366.002, Health

and Safety Code.

(15) "Solid waste" has the meaning assigned by Section 361.003,

Health and Safety Code.

(16) "Solid waste management system" means a system for

controlling all aspects of the collection, handling,

transportation, processing, recovery, and disposal of solid

waste.

(17) "Water" means groundwater, percolating or otherwise, lakes,

bays, ponds, springs, rivers, streams, creeks, and all other

bodies of surface water, natural or artificial, that are wholly

or partially within the district.

(18) "Water pollution" means the alteration of the physical,

chemical, or biological quality of or the contamination of water

that renders the water harmful, detrimental, or injurious to

humans, animal life, vegetation, or property, or to public

health, safety, or welfare, or that impairs the usefulness or the

public enjoyment of the water for any lawful or reasonable

purpose.

ARTICLE 2. CREATION OF DISTRICT; INITIAL APPOINTMENT OF BOARD

Creation of district

Sec. 2.01. Pursuant to Article XVI, Section 59, of the Texas

Constitution, a conservation and reclamation district to be known

as the Gaines County Solid Waste Management District is created

as a governmental agency and body politic and corporate of the

state.

Description

Sec. 2.02. The district's territory consists of the area within

the boundaries of Gaines County.

Appointment of initial directors

Sec. 2.03. (a) On or after the effective date of this Act, the

Commissioners Court of Gaines County shall appoint three persons,

the governing body of the city of Seminole shall appoint two

persons, and the governing body of the city of Seagraves shall

appoint two persons to serve as initial directors of the

district. The four persons appointed by the governing bodies of

the cities of Seminole and Seagraves shall represent the

municipalities within the county, and the three persons appointed

by the Commissioners Court of Gaines County shall represent the

unincorporated areas of the county. In addition, the board of

regents of The University of Texas System shall appoint one

person to serve as an ex-officio, nonvoting director of the

district.

(b) A vacancy on the initial board shall be filled in the same

manner as the original appointment for the unexpired term.

(c) The Commissioners Court of Gaines County and the governing

bodies of the cities of Seminole and Seagraves shall each appoint

one initial director to serve a term expiring on May 1 of the

first year after the year in which the original appointment is

made. In addition, the Commissioners Court of Gaines County shall

appoint two initial directors and the governing bodies of the

cities of Seminole and Seagraves shall each appoint one initial

director to serve terms expiring on May 1 of the second year

after the year in which the original appointment is made. The

initial ex-officio member serves a term expiring on May 1 of the

second year after the year in which the original appointment is

made. Successor directors serve two-year terms.

Confirmation and tax election

Sec. 2.04. The directors shall call and hold an election within

the boundaries of the proposed district to determine if the

proposed district will be created and a tax authorized.

Notice of election

Sec. 2.05. (a) Notice of the confirmation and tax election shall

state the day and places for holding the election, the

proposition to be voted on, and list the appointed directors.

(b) The board shall publish the notice of the election one time

in one or more newspapers of general circulation in the proposed

district. The notice must be published before the 35th day before

the date set for the election.

Ballot proposition

Sec. 2.06. The ballot shall be printed to permit voting for or

against the proposition: "The creation of the Gaines County Solid

Waste Management District and the levy of a maintenance and

operating tax in an amount not to exceed five cents on each $100

valuation." The ballot shall include the names of the persons

appointed as directors for the district.

Canvassing returns

Sec. 2.07. (a) Immediately after the confirmation and tax

election, the presiding judge of each polling place shall deliver

returns of the election to the board, and the board shall canvass

the returns and declare the result.

(b) If a majority of the votes cast at the election favor

creation of the district, the board shall declare the district

created and shall enter the results in its minutes. If a majority

of the votes cast at the election are against the creation of the

district, the board shall declare that the creation of the

district was defeated and shall enter the results in its minutes.

The board shall file a copy of the election results with the

commission.

(c) If a majority of the voters at the election vote against the

creation of the district, the board may call and hold additional

confirmation and tax elections, but another election to confirm

creation of the district may not be called and held by the board

before the first anniversary of the most recent confirmation and

tax election. If the creation of the district is not confirmed on

or before the fifth anniversary of the effective date of this

Act, this Act expires.

Bond proposition at creation election

Sec. 2.08. At an election to confirm creation of the district and

authorize the levy of taxes, the board may include a separate

proposition on the ballot to approve the issuance by the district

of bonds payable wholly or partially from property taxes. The

notice of the election under Section 2.05 of this Act must state

the bond proposition that is to appear on the ballot. The ballot

shall be printed to permit voting for or against the proposition:

"The issuance of bonds in the amount of $__________ payable

wholly (or partially) from property taxes for (STATE PURPOSE FOR

WHICH BOND PROCEEDS TO BE USED) and the levy of taxes in payment

of those bonds." If a majority of the voters at the election

approve the bond proposition, the board shall declare the result

and enter it in its minutes, and the district, if its creation is

confirmed, may issue the bonds in the amount authorized for the

purpose authorized and may levy and collect taxes necessary to

pay the principal of and interest on the bonds. If a majority of

the voters at the election do not approve the bond proposition,

the temporary board shall declare the result and enter it in its

minutes, and the district, if its creation is confirmed, may not

issue the bonds payable in whole or in part by property taxes.

The board shall file a copy of the bond election results with the

commission.

ARTICLE 3. DISTRICT ADMINISTRATION

Board of directors

Sec. 3.01. (a) The district is governed by a board of directors

composed of seven voting members and one ex-officio nonvoting

member who are appointed as provided by this Act. However, the

district shall change to a system of electing the voting

directors if:

(1) the Commissioners Court of Gaines County and the governing

bodies of the cities of Seminole and Seagraves each pass a

resolution calling for the election of the directors; or

(2) the board receives a petition signed by at least 150

registered voters of Gaines County calling for the election of

the directors.

(b) If the resolution is passed or the petition presented to the

board as provided by Subsection (a) of this section, a directors'

election shall be held on the first Saturday in May that occurs

after the resolution is passed or the petition presented. The

board by order may postpone the election date for one year if:

(1) the election will occur within 60 days after the date the

resolution is passed or the petition is presented; or

(2) the board determines that there is not sufficient time to

comply with the requirements of law and to order the election.

(c) The change to a system of electing the voting directors does

not apply to or affect the ex-officio nonvoting director

appointed by the board of regents of The University of Texas

System.

Method of election

Sec. 3.02. (a) If directors are elected, one director shall be

elected from each commissioner precinct and three directors shall

be elected from the district at large.

(b) At the initial election of directors, the candidate receiving

the highest number of votes from a commissioner precinct is the

director for that precinct, and the three candidates receiving

the highest number of votes from the district at large are the

directors for the district at large. If two or more persons tie

for the third-highest vote, the Commissioners Court of Gaines

County shall select the third member from those trying for the

place.

(c) The candidates elected from the odd-numbered precincts and

the two candidates elected from the district at large who receive

the highest number of votes at the initial election serve for a

term of two years. The candidates elected from the even-numbered

precincts and the candidate elected from the district at large

who receives the third-highest number of votes at that election

serve for a term of one year.

(d) After the initial election of directors, an election shall be

held on the first Saturday in May each year and the appropriate

number of successor directors shall be elected for two-year

terms.

Qualifications for office

Sec. 3.03. (a) To be eligible to be appointed as, to be a

candidate for, or to serve as a voting director, a person must

be:

(1) a resident of the district; and

(2) a qualified voter.

(b) In addition to the qualifications required by Subsection (a)

of this section, a person who is elected from a commissioner

precinct or who is appointed to fill a vacancy for a commissioner

precinct must be a resident of that commissioner precinct.

(c) Each voting director must execute a bond in the amount of

$5,000 with a corporate surety authorized to do business in this

state and conditioned on the faithful performance of the

director's duties.

Application for election

Sec. 3.04. (a) A person who wishes to have the person's name

printed on the ballot at a directors' election as a candidate for

director shall file an application with the secretary of the

district.

(b) The application must specify the commissioner precinct the

candidate wishes to represent or specify that the candidate

wishes to represent the district at large.

Beginning of director's term

Sec. 3.05. A director shall take office at the first regular

meeting of the board in May following the director's appointment

or election and qualification.

Vacancy on board

Sec. 3.06. (a) If the directors are appointed, a vacancy on the

board shall be filled in the same manner as the original

appointment for the unexpired term.

(b) If the directors are elected, the vacancy of an elected

director's position on the board shall be filled by appointment

of the remaining members of the board until the next election of

directors for the district. If that position is not scheduled to

be filled at that election, the person elected to fill the

position serves only for the remainder of the unexpired term.

Oath

Sec. 3.07. Each director shall file the statement and take the

constitutional oath of office required of state officers.

Organization of board

Sec. 3.08. (a) After each annual appointment or election of

directors, the board shall hold a regular meeting in May at the

district office and shall organize by electing from the members

of the board one person to serve as chairman, one person to serve

as vice-chairman, and one person to serve as secretary.

(b) A person selected to serve as chairman, vice-chairman, or

secretary serves in that capacity for a term of one year.

(c) The chairman shall preside over meetings of the board, and in

the chairman's absence the vice-chairman shall preside.

(d) The chairman, vice-chairman, and secretary shall perform the

duties and may exercise the powers specifically given them by

this Act or by orders of the board.

Meeting and actions of the board

Sec. 3.09. (a) The board shall meet at least one time each month

and may meet at any other time.

(b) A majority of the voting members of the board constitute a

quorum for the transaction of business of the district.

(c) Except as otherwise provided by this Act, the vote of a

majority of the voting directors is required for board action.

(d) The board shall adopt bylaws at its first meeting or as soon

after the first meeting as practicable. The board's bylaws must

prescribe the powers, duties, and procedures for removal from a

board office.

Other officers

Sec. 3.10. (a) The board may appoint a treasurer and an attorney

for the district.

(b) The persons appointed under this section are entitled to the

compensation provided by the district's budget.

(c) The person appointed as treasurer shall execute a bond in the

amount determined by the board, payable to the district,

conditioned on the faithful performance of the treasurer's

duties. The district shall pay for the bond.

Interest in contract

Sec. 3.11. A director who is financially interested in a contract

to be executed by the district for the purchase of property or

the construction of facilities shall disclose that fact to the

other directors and may not vote on the acceptance of the

contract.

Director's compensation

Sec. 3.12. (a) A director is entitled to receive $25 a day and

reimbursement for actual and necessary expenses incurred:

(1) for each day the director attends meetings of the board; and

(2) for each day the director attends to the business of the

district that is authorized by board resolution or motion.

(b) A director is not entitled to receive a per diem allowance

for more than 30 days in any one calendar year.

General manager; personnel

Sec. 3.13. (a) The board may employ a general manager for a term

and salary set by the board.

(b) The general manager is the chief executive officer of the

district. Under policies established by the board, the general

manager is responsible to the board for:

(1) administering the directives of the board;

(2) keeping the district's records, including minutes of the

board's meetings;

(3) coordinating with state, federal, and local agencies;

(4) developing plans and programs for the board's approval;

(5) hiring, supervising, training, and discharging district

employees;

(6) contracting for or retaining technical, scientific, legal,

fiscal, and other professional services; and

(7) performing any other duty assigned to the general manager by

the board.

(c) The board may discharge the general manager on a majority

vote of all of the voting directors.

Director's and employee's bonds

Sec. 3.14. (a) The general manager and each employee of the

district charged with the collection, custody, or payment of any

money of the district shall execute a fidelity bond. The board

shall approve the form, amount, and surety of the bond.

(b) The district shall pay the premiums on the employees' bonds

under this section.

Principal office

Sec. 3.15. The district shall maintain its principal office

inside the district's boundaries.

Records

Sec. 3.16. (a) The district shall keep complete and accurate

accounts of its business transactions in accordance with

generally accepted methods of accounting.

(b) The district shall keep complete and accurate minutes of its

meetings.

(c) The district shall maintain its accounts, contracts,

documents, minutes, and other records at its principal office.

(d) Neither the board nor its employees may disclose a district

record that relates to trade secrets or the economics of an

industry's operations.

Contracts

Sec. 3.17. The board may enter into contracts for administration

or services as provided by this Act, and those contracts shall be

executed by the board in the name of the district.

Supervision of district

Sec. 3.18. The district is subject to the continuing right of

supervision by the state, in accordance with state law.

Suits; payment of judgments

Sec. 3.19. (a) The district may, through its board, sue and be

sued in any court of this state in the name of the district.

Service of process in a suit may be had by serving the general

manager or other officers appointed by the board.

(b) The courts of this state shall take judicial notice of the

creation of the district.

(c) A court of this state that renders a money judgment against

the district may require the board to pay the judgment from money

in the district depository that is not dedicated to the payment

of any indebtedness of the district.

Seal

Sec. 3.20. The board shall adopt a seal for the district and may

alter the form of the seal from time to time.

ARTICLE 4. DISTRICT POWERS AND DUTIES

General powers and duties

Sec. 4.01. (a) The district shall administer and enforce this Act

and shall use its facilities and powers to accomplish the

purposes of this Act.

(b) After notice and hearing, the board may adopt rules necessary

to carry out this Act. The board shall adopt rules providing

procedures for giving notice and holding hearings.

(c) The district shall prepare and adopt plans for and shall

purchase, obtain permits for, construct, acquire, own, operate,

maintain, repair, improve, and extend inside and outside the

boundaries of the district any works, improvements, landfills,

recycling facilities, waste-to-energy facilities, composting

facilities, transfer stations, storage sites, and other

facilities, plants, pipelines, equipment, and appliances

necessary to transport, process, dispose of, and control solid

waste and to protect groundwater within the district in

accordance with state law.

(d) The district shall acquire all permits required by state law

that are necessary to carry out this article.

(e) The district may conduct studies and research for the

disposal of solid waste and the protection of water within the

district.

(f) The regulatory powers of the district under this Act extend

to every person within the district.

(g) Except as expressly limited by this Act, the district has all

powers, rights, and privileges necessary and convenient for

accomplishing the purposes of this Act conferred by general law

on a conservation and reclamation district created under Article

XVI, Section 59, of the Texas Constitution.

(h) Subject only to the authority vested in other entities by

general law, including those vested in the commission by Chapter

26, Water Code, and those vested in the department by Chapter

361, Health and Safety Code, the district may control water

pollution within the district.

(i) The powers granted to the district by this Act are cumulative

of all powers granted by other laws that are by their terms

applicable to the district.

(j) The district may not provide solid waste collection services

without an interlocal agreement approved by the county, the city

of Seminole, and the city of Seagraves. However, the district

shall purchase equipment, facilities, containers, and other

necessary items for collection services if the district adopts a

recycling program.

(k) The district may not contract with a person outside the

boundaries of the district to provide to that person solid waste

management services or any other service authorized under this

Act.

Gifts, grants, loans, and other funds

Sec. 4.02. To carry out any purposes or powers under this Act,

the district may apply for, accept, receive, and administer

gifts, grants, loans, and other funds available from any source.

Consultation, contracts, and cooperation with other governmental

agencies and entities

Sec. 4.03. To carry out any purposes or powers under this Act,

the district may advise, consult, contract, and cooperate with

the federal government and its agencies, the state and its

agencies, local governments, and private entities.

Acquisition of property

Sec. 4.04. The district may acquire by gift, grant, devise,

purchase, or lease any land, easements, rights-of-way, and other

property interests inside the district necessary to carry out the

powers and duties provided by this Act.

Eminent domain

Sec. 4.05. (a) The district may acquire land within the district

for the purposes authorized by Section 4.01(c) of this Act by

condemnation if the board determines, after notice and hearing,

that it is necessary.

(b) The district must exercise the power of eminent domain in the

manner provided by Chapter 21, Property Code, but the district is

not required to:

(1) deposit in the trial court money or a bond as provided by

Section 21.021(a), Property Code;

(2) pay in advance or give bond or other security for costs in

the trial court;

(3) give bond for the issuance of a temporary restraining order

or a temporary injunction; or

(4) give bond for costs or supersedeas on an appeal or writ of

error.

(c) If the district, in the exercise of the power of eminent

domain, requires relocating, raising, lowering, rerouting,

changing the grade, or altering the construction of any railroad,

highway, pipeline, or electric transmission and electric

distribution, telegraph or telephone lines, conduits, poles or

facilities, the district must bear the actual cost of relocating,

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

construction to provide comparable replacement without

enhancement of facilities, after deducting the net salvage value

derived from the old facility.

Authority to enter into construction, renovation, and repair

contracts

Sec. 4.06. The district may contract with any person to

construct, renovate, or repair any of its works, improvements, or

facilities, or other plants, pipelines, equipment, and appliances

and, from time to time, make improvements to them.

Bids on contracts

Sec. 4.07. Contracts entered into under Section 4.06 of this Act

requiring an expenditure of more than $15,000 may be made only

after competitive bidding as provided by Subchapter B, Chapter

271, Local Government Code.

Attachments to contracts

Sec. 4.08. A contract entered into under Section 4.06 of this Act

must contain, or have attached to it, the specifications, plans,

and details for work included in the contract, and work shall be

done according to those plans and specifications under the

supervision of the district.

Execution and availability of contracts

Sec. 4.09. (a) A contract entered into under Section 4.06 of this

Act must be in writing and signed by the contractor and a

representative of the district designated by the board.

(b) The contract shall be kept in the district's office and must

be available for public inspection.

Contractor's bond

Sec. 4.10. (a) A contractor shall execute a bond in an amount

determined by the board, not to exceed the contract price,

payable to the district and approved by the board, conditioned on

the faithful performance of the obligations, agreements, and

covenants of the contract.

(b) The bond must provide that if the contractor defaults on the

contract, the contractor will pay to the district all damages

sustained as a result of the default. The bond shall be deposited

in the district's depository, and a copy of the bond shall be

kept in the district's office.

Monitoring work

Sec. 4.11. (a) The board has control of construction, renovation,

or repairs being done for the district under a contract entered

into under Section 4.06 of this Act and shall determine whether

or not the contract is being fulfilled.

(b) The board shall have the construction, renovation, or repair

work inspected by engineers, inspectors, and personnel of the

district.

(c) During the progress of the work, the engineers, inspectors,

and personnel doing the inspections shall submit to the board

written reports that show whether or not the contractor is

complying with the contract.

(d) On completion of construction, renovation, or repair work,

the engineers, inspectors, and personnel shall submit to the

board a final detailed written report including information

necessary to show whether or not the contractor has fully

complied with the contract.

Payment for work

Sec. 4.12. (a) The district shall pay the contract price of

construction, renovation, or repair contracts in accordance with

this section.

(b) The district shall make progress payments under contracts

monthly as the work proceeds or at more frequent intervals as

determined by the board.

(c) If requested by the board, the contractor shall furnish an

analysis of the total contract price showing the amount included

for each principal category of the work, in such detail as

requested, to provide a basis for determining progress payments.

(d) In making progress payments, 10 percent of the estimated

amount shall be retained until final completion and acceptance of

the contract work. However, if the board, at any time after 50

percent of the work has been completed, finds that satisfactory

progress is being made, it may authorize any of the remaining

progress payments to be made in full. Also, if the work is

substantially complete, the board, if it finds the amount

retained to be in excess of the amount adequate for the

protection of the district, may release to the contractor all or

a portion of the excess amount.

(e) On completion and acceptance of each separate project, work,

or other division of the contract, on which the price is stated

separately in the contract, payment may be made without retention

of a percentage.

(f) When work is completed according to the terms of the

contract, the board shall draw a warrant on the depository to pay

any balance due on the contract.

Contracts for purchase of vehicles, equipment, and supplies over

$15,000

Sec. 4.13. (a) If the estimated amount of a proposed contract for

the purchase of vehicles, equipment, or supplies is more than

$15,000, the board shall ask for competitive bids as provided by

Section 4.07 of this Act.

(b) This section does not apply to purchase of property from

public agencies or to contracts for personal or professional

services.

Entry on land

Sec. 4.14. (a) The directors, the engineer, and the employees of

the district may go on any land inside or outside the boundaries

of the district to make surveys and examine the land with

reference to the location of works, improvements, and waste

disposal, treatment, and other facilities, plants, pipelines,

equipment, and appliances and to attend to business of the

district.

(b) Before a director, engineer, or employee enters on the land,

the landowner must grant written permission or five days' written

notice must be given to the landowner.

(c) If any activities of the district on the land cause damages

to the land or property, the land or property shall be restored

as nearly as possible to its original state. The district shall

pay the cost of the restoration.

Right to use road right-of-way

Sec. 4.15. (a) The district has a right-of-way along and across

all public state or county roads or highways; provided that a

governmental entity having jurisdiction of such right-of-way may

designate the place upon the right-of-way the facilities of the

district shall be installed and may require the relocation of the

facilities of the district to accommodate any widening or

changing of traffic lanes.

(b) The district may not proceed with any action to change,

alter, or damage facilities or property of the state without

having first obtained the written consent of the governmental

entity having control and jurisdiction of such facilities or

property.

Fees and charges

Sec. 4.16. (a) The board may adopt and enforce all necessary

charges, fees, or rentals, in addition to taxes, for providing

any district facilities or services.

(b) The board may require a deposit for any services or

facilities furnished and may or may not provide that the deposit

will bear interest. The interest, if any, may accrue to the

deposit or be used to offset amounts due.

(c) The board may discontinue a facility or service to prevent an

abuse or enforce payment of an unpaid charge, fee, or rental due

the district, including taxes that have been due for not less

than six months.

Acquisition of existing facilities

Sec. 4.17. If the district acquires existing works, improvements,

facilities, plants, pipelines, equipment, and appliances that are

completed, partially completed, or under construction, the

district may assume the contracts and obligations of the previous

owner and perform the obligations of the previous owner in the

same manner and to the same extent that any other purchaser or

assignee would be bound.

Solid waste resource recovery facilities

Sec. 4.18. The district may construct or acquire and operate

solid waste resource recovery facilities inside the district.

Regulation of solid waste management

Sec. 4.19. The district shall comply with all standards, laws,

and rules relating to the operation for all aspects of solid

waste handling, including storage, collection, recycling,

incineration, sanitary landfill, or composting.

On-site sewage disposal systems

Sec. 4.20. (a) The district may apply to the department for

designation as an authorized agent to implement and enforce

on-site sewage disposal rules under Chapter 366, Health and

Safety Code.

(b) If the district finds that due to the nature of the soil or

drainage in the area it is necessary to prevent water pollution

that may injure the public health, the district by rule may:

(1) provide limits on the number and kind of septic tanks in an

area defined by the rule;

(2) prohibit the use of septic tanks in the area; or

(3) prohibit the installation of new septic tanks in the area.

(c) The board shall consult the department and the commission

before the adoption of a rule under Subsection (b) of this

section.

(d) The board may not issue a rule under Subsection (b) of this

section without first holding a public hearing in the area to be

affected by the rule.

Solid waste management contracts

Sec. 4.21. (a) Unless otherwise provided by this Act, the

district may contract to provide solid waste management services

inside the district.

(b) The district shall set fees in a contract under Subsection

(a) of this section after considering:

(1) the quality of the waste;

(2) the quantity of the waste;

(3) the difficulty encountered in treating or disposing of the

waste;

(4) operation and maintenance expenses and debt retirement

services; and

(5) any other reasonable considerations.

Areawide waste treatment

Sec. 4.22. The powers and duties conferred on the district are

granted subject to the state policy to encourage the development

and use of regional and integrated solid waste management systems

to serve the needs of the citizens of the state.

ARTICLE 5. DISTRICT FINANCES

Fiscal year

Sec. 5.01. (a) The district operates on the fiscal year

established by the board.

(b) The fiscal year may not be changed more than once in a

24-month period.

Annual audit

Sec. 5.02. Annually, the board shall have an audit made of the

financial condition of the district.

Annual budget

Sec. 5.03. (a) The board shall prepare and approve an annual

budget for the district.

(b) The budget shall contain a complete financial statement,

including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand to the credit of each fund of the

district;

(3) the amount of money received by the district from all sources

during the previous year;

(4) the amount of money available to the district from all

sources during the ensuing year;

(5) the amount of the balances expected at the end of the year in

which the budget is being prepared;

(6) the estimated amount of revenues and balances available to

cover the proposed budget; and

(7) the estimated tax rate that will be required.

Amending budget

Sec. 5.04. After adoption, the annual budget may be amended on

the board's approval.

Limitation on expenditure

Sec. 5.05. Money may not be spent for an expense not included in

the annual budget or an amendment to it unless the board by order

declares the expense to be necessary.

Sworn statement

Sec. 5.06. As soon as practicable after the close of the fiscal

year, the treasurer of the district shall prepare for the board a

sworn statement of the amount of money that belongs to the

district and an account of the disbursements of that money.

Depository

Sec. 5.07. (a) The board shall name one or more banks to serve as

depository for district funds.

(b) District funds, other than those transmitted to a bank for

payment of bonds issued by the district, shall be deposited as

received with the depository bank and must remain on deposit.

This section does not limit the power of the board to invest the

district's funds as provided by Section 5.08 of this Act.

(c) Before the district deposits funds in a bank in an amount

that exceeds the maximum amount secured by the Federal Deposit

Insurance Corporation, the bank must execute a bond or provide

other security in an amount sufficient to secure from loss the

district's funds that exceed the amount secured by the Federal

Deposit Insurance Corporation.

Investments

Sec. 5.08. (a) Funds of the district may be invested and

reinvested by the board or its authorized representative in those

investments specified by Article 836 or 837, Revised Statutes, or

the Public Funds Investment Act of 1987 (Article 842a-2, Vernon's

Texas Civil Statutes).

(b) Funds of the district may be placed in certificates of

deposit of state or national banks or state or federal savings

and loan associations within the state provided that funds are

secured in the manner required for the security of the funds of

counties of the state.

(c) The board by resolution may provide that an authorized

representative of the district may invest and reinvest the funds

of the district and provide for money to be withdrawn from the

appropriate accounts of the district for investments on terms the

board considers advisable.

Payment of expenses

Sec. 5.09. (a) The district's directors may pay all costs and

expenses necessarily incurred in the creation, organization, and

operation of the district, legal fees, and other incidental

expenses and may reimburse any person for money advanced for

those purposes.

(b) Payments may be made from money obtained from the sale of

bonds issued by the district or out of taxes, fees, or other

revenues of the district.

Borrowing money

Sec. 5.10. The district may borrow money for any purpose

authorized under this Act or any combination of those purposes.

ARTICLE 6. BONDS

Authority to issue bonds

Sec. 6.01. The board may issue and sell bonds in the name of the

district to acquire land and construct works, improvements, and

waste disposal, treatment, and other facilities, plants,

pipelines, equipment, and appliances as provided by this Act.

Bond payment

Sec. 6.02. The board may provide for the payment of the principal

of and interest on the bonds:

(1) from the levy and collection of property taxes on all taxable

property within the district;

(2) by pledging all or part of the designated revenues from the

ownership or operation of the district's works, improvements, and

facilities; or

(3) from a combination of the sources listed by Subdivisions (1)

and (2) of this section.

Bond election

Sec. 6.03. (a) Bonds may not be issued by the district until

authorized by a majority vote of individuals qualified to vote

and actually voting in the area within the boundaries of the

district at an election called and held for that purpose.

(b) The board may order a bond election. The order calling the

election must state the nature and the date of the election, the

hours during which the polls will be open, the location of the

polling places, the amount of bonds to be authorized, and the

maximum maturity of the bonds.

(c) Notice of a bond election must be given as provided by the

Election Code.

(d) At an election to authorize bonds, the ballot must be printed

to provide for voting for or against the issuance of bonds and

the levy of property taxes for payment of the bonds.

(e) The board shall canvass the returns and declare the results

of the election. If a majority of the votes cast at the election

favor the issuance of the bonds, the bonds may be issued by the

board, but if a majority of the votes cast at the election do not

favor issuance of the bonds, the bonds may not be issued.

Terms; form

Sec. 6.04. (a) The district may issue its bonds in various series

or issues.

(b) Bonds may mature serially or otherwise not more than 50 years

after the date of issuance and shall bear interest at a rate

permitted by state law.

(c) The district's bonds and interest coupons, if any, are

investment securities under the terms of Chapter 8, Business

& Commerce Code, and may be issued registrable as to

principal or as to principal and interest or may be issued in

book entry form and may be made redeemable before maturity at the

option of the district or may contain a mandatory redemption

provision.

(d) The district's bonds may be issued in the form,

denominations, and manner and under the terms, conditions, and

details and shall be signed and executed as provided by the board

in the resolution or order authorizing the bonds.

Bond provisions

Sec. 6.05. (a) In the orders or resolutions authorizing the

issuance of bonds, including refunding bonds, the board may

provide for the flow of funds, the establishment and maintenance

of the interest and sinking fund, the reserve fund, and other

funds and may make additional covenants with respect to the bonds

and the pledged fees.

(b) The orders or resolutions of the board authorizing the

issuance of bonds may prohibit the further issuance of bonds or

other obligations payable from the pledged fees or may reserve

the right to issue additional bonds to be secured by a pledge of

and payable from the fees on a parity with or subordinate to the

pledge in support of the bonds being issued.

(c) The orders or resolutions of the board issuing bonds may

contain other provisions and covenants as the board may

determine.

(d) The board may adopt and have executed any other proceedings

or instruments necessary and convenient in the issuance of bonds.

Approval and registration

Sec. 6.06. (a) Bonds issued by the district and the records

relating to their issuance must be submitted to the attorney

general for examination as to their validity.

(b) If the attorney general finds that the bonds have been

authorized in accordance with the law, the attorney general shall

approve them, and the comptroller of public accounts shall

register the bonds.

(c) Following approval and registration, the bonds are

incontestable and are binding obligations according to their

terms.

Refunding bonds

Sec. 6.07. (a) Refunding bonds of the district may be issued to

refund and pay off an outstanding indebtedness the district has

issued or assumed.

(b) The bonds must be issued in the manner provided by Chapter

784, Acts of the 61st Legislature, Regular Session, 1969 (Article

717k-3, Vernon's Texas Civil Statutes).

(c) The refunding bonds may be sold and the proceeds applied to

the payment of outstanding indebtedness or may be exchanged in

whole or in part for not less than a similar principal amount of

outstanding indebtedness. If the refunding bonds are to be sold

and the proceeds applied to the payment of outstanding

indebtedness, the refunding bonds must be issued and payments

made in the manner provided by Chapter 503, Acts of the 54th

Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas

Civil Statutes).

Legal investments; security for deposits

Sec. 6.08. (a) District bonds are legal and authorized

investments for:

(1) a bank;

(2) a savings bank;

(3) a trust company;

(4) a savings and loan association;

(5) an insurance company;

(6) a fiduciary;

(7) a trustee;

(8) a guardian; and

(9) the sinking fund of a municipality, county, school district,

or other political subdivision of the state and other public

funds of the state and its agencies, including the permanent

school fund.

(b) District bonds may secure deposits of public funds of the

state or a municipality, county, school district, or other

political subdivision of the state. The bonds are lawful and

sufficient security for deposits to the extent of their value, if

accompanied by all unmatured coupons.

Mandamus by bondholders

Sec. 6.09. In addition to all other rights and remedies provided

by law, if the district defaults in the payment of principal,

interest, or redemption price on its bonds when due or if it

fails to make payments into any fund or funds created in the

orders or resolutions authorizing the issuance of the bonds or

defaults in the observation or performance of any other

covenants, conditions, or obligations set forth in the orders or

resolutions authorizing the issuance of its bonds, the owners of

any of the bonds are entitled to a writ of mandamus issued by a

court of competent jurisdiction compelling and requiring the

district and its officials to observe and perform the covenants,

obligations, or conditions prescribed in the orders or

resolutions authorizing the issuance of the district's bonds.

Application of other laws

Sec. 6.10. Bonds of the district are considered bonds under the

Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil

Statutes).

ARTICLE 7. TAXES

Tax status of bonds

Sec. 7.01. Since the district created under this Act is a public

entity performing an essential public function, bonds issued by

the district, any transaction relating to the bonds, and profits

made in the sale of the bonds are free from taxation by the state

or by a municipality, county, special district, or other

political subdivision of the state.

Levy of taxes

Sec. 7.02. (a) The board may annually levy taxes in the district

in an amount necessary to pay the principal of and interest on

bonds issued by the district and the expense of assessing and

collecting taxes.

(b) The district may annually levy and collect a maintenance and

operating tax in an amount not to exceed five cents on each $100

of assessed valuation of property in the district to pay

maintenance and operating expenses of the district.

(c) The combined tax rate for all purposes may not exceed 10

cents on each $100 of assessed valuation of property in the

district.

Board authority

Sec. 7.03. (a) The board may levy taxes for the entire year in

which the district is created.

(b) The board shall levy taxes on all property within the

boundaries of the district subject to district taxation.

Tax rate

Sec. 7.04. In setting the tax rate, the board shall take into

consideration the income of the district from sources other than

taxation. On determination of the amount of tax required to be

levied, the board shall make the levy and certify it to the tax

collector.

Tax appraisal, assessment, and collection

Sec. 7.05. (a) The Tax Code governs the appraisal, assessment,

and collection of district taxes.

(b) The board may provide for the appointment of a tax collector

for the district or may contract for the collection of taxes as

provided by the Tax Code.

ARTICLE 8. CHANGE IN BOUNDARIES

Expansion of district territory

Sec. 8.01. (a) Registered voters of a defined territory that is

not included in the district may file a petition with the

secretary of the board requesting the inclusion of the territory

in the district. The petition must be signed by at least 50

registered voters of the territory or a majority of those voters,

whichever is less.

(b) The board by order shall set a time and place to hold a

hearing on the petition to include the territory in the district.

The board shall set a date for the hearing that is after the 30th

day after the date the board issues the order.

(c) If after the hearing the board finds that annexation of the

territory into the district would be feasible and would benefit

the district, the board may approve the annexation by a

resolution entered in its minutes. The board is not required to

include all of the territory described in the petition if the

board finds that a modification or change is necessary or

desirable.

(d) Annexation of territory is final when approved by a majority

of the voters at an election held in the district and by a

majority of the voters at a separate election held in the

territory to be annexed. If the district has outstanding debts or

taxes, the voters in the election to approve the annexation must

also determine if the annexed territory will assume its

proportion of the debts or taxes if added to the district.

(e) The election ballots shall be printed to provide for voting

for or against the following, as applicable:

(1) "Adding (description of territory to be added) to the Gaines

County Solid Waste Management District."

(2) "(Description of territory to be added) assuming its

proportionate share of the outstanding debts and taxes of the

Gaines County Solid Waste Management District, if it is added to

the district."

(f) The election shall be held after the 45th day and on or

before the 60th day after the date the election is ordered. The

election shall be ordered and notice of the election shall be

given in accordance with the Election Code. Section 41.001(a),

Election Code, does not apply to an election held under this

section.

Acts 1991, 72nd Leg., ch. 670, Sec. 1, eff. June 16, 1991. Sec.

4.07 amended by Acts 1993, 73rd Leg., ch. 757, Sec. 31, eff.

Sept. 1, 1993; Sec. 4.13 amended by Acts 1993, 73rd Leg., ch.

757, Sec. 32, eff. Sept. 1, 1993.