Texas Water Code Title 4, Chapter 54 - Municipal Utility Districts

SUBCHAPTER A GENERAL PROVISIONS

SUBCHAPTER B CREATION OR EXPANSION OF DISTRICT; CONVERSION OF DISTRICT

• Texas Section 54.001 - Definitions
  In this chapter: (1) "District" means a municipal utility district operating under this chapter. (2) "Board" means the board of directors of a district. (3)...
• Texas Section 54.011 - Creation Of District
  A municipal utility district may be created under and subject to the authority, conditions, and restrictions of Article XVI, Section 59, of the Texas Constitution....
• Texas Section 54.012 - Purposes Of A District
  A district shall be created for the following purposes: (1) the control, storage, preservation, and distribution of its storm water and floodwater, the water of...
• Texas Section 54.013 - Composition Of District
  (a) A district may include the area in all or part of any county or counties including all or part of any cities and other...
• Texas Section 54.014 - Petition
  When it is proposed to create a district, a petition requesting creation shall be filed with the commission. The petition shall be signed by a...
• Texas Section 54.015 - Contents Of Petition
  The petition shall: (1) describe the boundaries of the proposed district by metes and bounds or by lot and block number, if there is a...
• Texas Section 54.016 - Consent Of City
  (a) No land within the corporate limits of a city or within the extraterritorial jurisdiction of a city, shall be included in a district unless...
• Texas Section 54.0161 - Review Of Creation By County
  (a) This section applies only to a proposed district all of which is to be located outside the corporate limits of a municipality. (a-1) Promptly...
• Texas Section 54.0162 - Option Of Selection By District Composed Of Noncontiguous Areas Located In The Extraterritorial Jurisdiction Of Two Municipalities
  (a) A municipal utility district composed of noncontiguous areas that on January 1, 1995, are contained in the extraterritorial jurisdiction of two municipalities may choose,...
• Texas Section 54.0163 - Option Of Selection Of Extraterritorial Jurisdiction For Certain Districts
  (a) The board of a district that is located in the extraterritorial jurisdictions of more than one municipality by resolution may select the municipality that...
• Texas Section 54.0165 - Addition To District Of Land In Extraterritorial Jurisdiction Of Municipality
  (a) A district may not add land that is located in the extraterritorial jurisdiction of a municipality unless the governing body of the municipality gives...
• Texas Section 54.018 - Notice And Hearing On District Creation
  If a petition is filed under Section 54.014, the commission shall give notice of an application as required by Section 49.011 and may conduct a...
• Texas Section 54.020 - Hearing
  (a) If the commission determines that a hearing is necessary under Section 49.011, the commission shall conduct a hearing and accept evidence on the sufficiency...
• Texas Section 54.021 - Granting Or Refusing Petition
  (a) If the commission finds that the petition conforms to the requirements of Section 54.015 and that the project is feasible and practicable and is...
• Texas Section 54.022 - Temporary Directors
  If the commission grants the petition, it shall appoint five temporary directors to serve until permanent directors are elected. Added by Acts 1971, 62nd Leg.,...
• Texas Section 54.023 - Appeal From The Order Of The Commission
  Any person who signed the petition, any city, or any person who appeared in person or by attorney or agent and offered testimony for or...
• Texas Section 54.024 - Supervision By Commission
  The rights, powers, privileges, authority, and functions conferred on a district by granting of a petition for creation shall be subject to the continuing right...
• Texas Section 54.025 - Qualification Of Temporary Directors
  After a district has been organized, each temporary director shall execute a bond in accordance with the provisions of Section 49.055 and shall take the...
• Texas Section 54.030 - Conversion Of Certain Districts Into Districts Operating Under This Chapter
  (a) Any water improvement district, water control and improvement district, fresh water supply district, levee improvement district, irrigation district, or any other conservation and reclamation...
• Texas Section 54.031 - Establishing Date For Hearing
  When the resolution requesting conversion is filed, the commission, or someone authorized by the commission, shall fix a date, time, and place when the conversion...
• Texas Section 54.032 - Conversion Of District: Notice
  (a) Notice of the conversion hearing shall be given by publishing notice in a newspaper with general circulation in the county or counties in which...
• Texas Section 54.033 - Conversion Of District; Findings
  (a) After a hearing, if the commission finds that conversion of the district into one operating under this chapter would serve the best interest of...
• Texas Section 54.034 - Effect Of Conversion
  A district which is converted into a district operating under this chapter shall: (1) be constituted a municipal utility district operating under and governed by...
• Texas Section 54.035 - Reservation Of Certain Powers For Converted Districts
  (a) Any district after converting into a municipal utility district may continue to exercise all necessary specific powers under any specific conditions provided by the...
• Texas Section 54.036 - Directors To Continue Serving
  The existing board of a district converted to a municipal utility district under the provisions of this chapter shall continue to serve as the board...

SUBCHAPTER C ADMINISTRATIVE PROVISIONS

• Texas Section 54.037 - Regional Plan Implementation Agencies
  (a) This section applies only to regional plan implementation agencies, referred to in this section as agency, created as provided below. An agency may only...
• Texas Section 54.101 - Board Of Directors
  A district shall be governed by a board of five directors. Added by Acts 1971, 62nd Leg., p. 781, ch. 84, Sec. 1.
• Texas Section 54.102 - Qualifications For Directors
  To be qualified to serve as a director, a person shall be at least 18 years old, a resident citizen of the State of Texas,...

SUBCHAPTER D POWERS AND DUTIES

• Texas Section 54.103 - Limitation On Filling Vacancies
  A board may not appoint a person to fill a vacancy on the board if the person: (1) resigned from the board: (A) in the...
• Texas Section 54.201 - Powers
  (a) A district shall have the functions, powers, authority, rights, and duties which will permit accomplishment of the purposes for which it was created. (b)...
• Texas Section 54.203 - Municipal Solid Waste
  A district is authorized to purchase, construct, acquire, own, operate, maintain, repair, improve, extend, or establish a municipal solid waste collection and disposal system, including...
• Texas Section 54.205 - Adopting Rules And Regulations
  A district may adopt and enforce reasonable rules and regulations to: (1) secure and maintain safe, sanitary, and adequate plumbing installations, connections, and appurtenances as...
• Texas Section 54.2051 - Service Connections To Certain Dwelling Units
  (a) If the tenant of an individually metered dwelling unit applies to a district for utility service for that unit, the district may not require...
• Texas Section 54.2052 - Plumbing Code
  Notwithstanding any other law, a district is not required to adopt a plumbing code. A district may adopt and enforce one or more plumbing codes...
• Texas Section 54.206 - Effect Of Rules
  After the required publication, rules adopted by the district under Section 54.205 of this code shall be recognized by the courts as if they were...
• Texas Section 54.207 - Publication Of Rules
  (a) The board shall publish once a week for two consecutive weeks a substantive statement of the rules and the penalty for their violation in...
• Texas Section 54.208 - Effective Date Of Rules
  The penalty for violation of a rule is not effective and enforceable until five days after the publication of the notice. Five days after the...
• Texas Section 54.209 - Limitation On Use Of Eminent Domain
  A district may not exercise the power of eminent domain outside the district boundaries to acquire: (1) a site for a water treatment plant, water...
• Texas Section 54.234 - Acquiring Road Powers
  (a) Any district or any petitioner seeking the creation of a district may petition the commission to acquire the power under the authority of Article...
• Texas Section 54.235 - Authority To Contract
  Any district created by general law or special act of the legislature in existence for at least 10 years which lies within a county that...
• Texas Section 54.2351 - Contracts With Other Districts Or Water Supply Corporations
  (a) In this section, "authorized water district" means a district created under Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution....
• Texas Section 54.236 - Street Or Security Lighting
  (a) Subject to the provisions of this section, a district may purchase, install, operate, and maintain street lighting or security lighting within public utility easements...
• Texas Section 54.237 - Enforcement Of Real Property Restrictions
  (a) As used in this section, "restriction" means a limitation on the use of real property that is established or incorporated in properly recorded covenants,...
• Texas Section 54.238 - Definitions
  In this subchapter: (1) "Developer" means a person who owns a tract of land within a district and who has divided or proposes to divide...
• Texas Section 54.239 - Appeal To The Commission Of Decision Of Board Regarding Facilities
  A person aggrieved by a decision of a board involving the cost, purchase, or use of facilities may appeal the decision to the commission by...
• Texas Section 54.240 - Notice
  The commission shall give notice of the petition to persons who the commission determines may be affected by the petition, including: (1) the board; (2)...
• Texas Section 54.241 - Action On The Petition
  (a) After notice and hearing, the commission shall render a written decision granting or denying the petition, in whole or in part. (b) In rendering...
• Texas Section 54.242 - Street Repair Or Maintenance
  A district created by general law or special act of the legislature in existence for at least 10 years may repair or maintain a street...

SUBCHAPTER F ISSUANCE OF BONDS

• Texas Section 54.243 - Disposition Of Impact Fees
  A district that charges a fee that is an impact fee as described in Section 395.001(4), Local Government Code, shall use the fees collected and...
• Texas Section 54.501 - Issuance Of Bonds
  The district may issue its bonds for any purpose authorized by this chapter, Chapter 49, or other applicable laws, including the purpose of purchasing, constructing,...
• Texas Section 54.502 - Form Of Bonds
  (a) A district may issue its bonds in various series or issues. (b) Bonds shall mature serially or otherwise not more than 40 years from...
• Texas Section 54.503 - Manner Of Repayment Of Bonds
  The board may provide for the payment of principal of and interest and redemption price on the bonds in any one of the following manners:...
• Texas Section 54.504 - Additional Security For Bonds
  (a) The bonds, within the discretion of the board, may be additionally secured by a deed of trust or mortgage lien on part or all...
• Texas Section 54.505 - Election On Tax Bonds
  Bonds payable solely from revenues may be issued by resolution or order of the board without an election, but no bonds, except refunding bonds, payable...
• Texas Section 54.507 - Notice Of Bond Election
  (a) Repealed by Acts 1995, 74th Leg., ch. 715, Sec. 43, eff. Sept. 1, 1995. (b) All or any part of any facilities or improvements...
• Texas Section 54.510 - Provisions Of Bonds
  (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...
• Texas Section 54.512 - Sale Or Exchange Of Bonds
  (a) The board shall sell the bonds on the best terms and for the best possible price but none of the bonds may be sold...
• Texas Section 54.514 - Refunding Bonds
  (a) A district may issue bonds to refund all or any part of its outstanding bonds, notes, or other obligations including matured but unpaid interest...
• Texas Section 54.5161 - Review Of Bond Projects By Counties
  (a) Before the commission gives final approval on any bond issue for the purpose of financing a project of a district located wholly or partly...
• Texas Section 54.518 - Mandamus By Bondholders
  In addition to all other rights and remedies provided by the laws of the state, in the event the district defaults in the payment of...
• Texas Section 54.520 - Cancellation Of Unsold Bonds
  (a) The board, by order or resolution, may provide for the cancellation of all or any part of any bonds which have been submitted to...
• Texas Section 54.521 - Use Of Bond Proceeds To Pay Certain Interest
  The district may use bond proceeds to pay or to establish a reasonable reserve to pay not more than three years' interest on the notes...

SUBCHAPTER G TAXES

• Texas Section 54.522 - Bonds For Street Repair Or Maintenance
  (a) The legislature finds that the condition of streets affects: (1) the control, storage, preservation, and distribution of the state's storm and flood waters; (2)...
• Texas Section 54.601 - Tax Levy For Bonds
  At the time bonds payable in whole or in part from taxes are issued, the board shall levy a continuing direct annual ad valorem tax...
• Texas Section 54.602 - Establishment Of Tax Rate In Each Year
  (a) Repealed by Acts 1979, 66th Leg., p. 2330, ch. 841, Sec. 6(a)(3), eff. Jan. 1, 1982. (b) In determining the actual rate to be...
• Texas Section 54.603 - Mandamus By Bondholders
  In the event the board fails or refuses to levy a sufficient tax in each year which, together with other revenues or receipts which may...

SUBCHAPTER H ADDING AND EXCLUDING TERRITORY; CONSOLIDATING AND DISSOLVING DISTRICTS

• Texas Section 54.604 - Assessment And Collection Of District Taxes
  The assessor and collector shall assess and collect taxes for the district. Added by Acts 1971, 62nd Leg., p. 801, ch. 84, Sec. 1. Amended...
• Texas Section 54.728 - Consolidation Of Districts
  Two or more districts governed by the provisions of this chapter may consolidate into one district as provided by Sections 54.729-54.733 of this code. Added...
• Texas Section 54.729 - Elections To Approve Consolidation
  (a) After the board of each district has agreed on the terms and conditions of consolidation, which may include the assumption by each district of...
• Texas Section 54.730 - Governing Consolidated Districts
  (a) After two or more districts are consolidated, they become one district and are governed as one district, except for the payment of debts created...
• Texas Section 54.731 - Debts Of Original Districts
  (a) After two or more districts are consolidated, the debts of the original districts shall be protected and may not be impaired. These debts may...
• Texas Section 54.732 - Assessment And Collection Of Taxes
  After consolidation, the district shall assess and collect taxes on property in the original districts to pay debts created by the original districts unless each...
• Texas Section 54.733 - Voted But Unissued Bonds
  In the event any consolidating district has voted but unissued bonds payable in whole or in part from taxation and the consolidated district assumed the...
• Texas Section 54.734 - Dissolution Of District Prior To Issuance Of Bonds
  (a) If the board considers it advisable before the issuance of any bonds, notes, or other indebtedness, the board may dissolve the district and liquidate...
• Texas Section 54.735 - Notice Of Hearing
  The board shall post notice of the hearing on the bulletin board at the courthouse door of each county in which the district is located...
• Texas Section 54.736 - Hearing
  The board shall hear all interested persons and shall consider their evidence at the time and place stated in the notice. Added by Acts 1971,...
• Texas Section 54.737 - Board's Order To Dissolve District
  If the board unanimously determines from the evidence that the best interests of the persons and property in the district will be served by dissolving...
• Texas Section 54.738 - Judicial Review Of Board's Order
  The board's decree to dissolve the district may be judicially reviewed in the manner set forth in Sections 54.708-54.710 of this code for the review...
• Texas Section 54.739 - Substituting Land Of Equal Value
  After the district is organized and has obtained voter approval for the issuance of, or has sold, bonds payable wholly or partly from ad valorem...
• Texas Section 54.740 - Requisites For Application For Exclusion
  An owner of land in the district not receiving services from the district may apply for its exclusion from the district boundaries if all taxes...
• Texas Section 54.741 - Inclusion Of Substitute Land Required
  An application for exclusion can only be considered by the board if an application is filed by an owner of other land lying outside the...
• Texas Section 54.742 - Application For Inclusion
  The application submitted by an owner of land proposed for inclusion shall set forth that the owner of the new land assumes the payment of...
• Texas Section 54.743 - Notice Of Hearing And Hearing Procedures
  The board shall give notice of the hearing on the applications for exclusion and inclusion in conformity with the notice and hearing requirements otherwise applicable...
• Texas Section 54.744 - Impairment Of Security
  (a) For purposes of the board's consideration of the applications, the lands proposed for inclusion shall be deemed to be sufficient to avoid an impairment...
• Texas Section 54.745 - Board's Resolution To Substitute
  If the board finds that all the conditions provided for the exclusion of land and inclusion of other land in the district exist and that...
• Texas Section 54.746 - Liability Of Excluded And Included Land
  The land excluded from the district is free from any lien or liability created on the excluded land by reason of its having been included...
• Texas Section 54.747 - Service To Included Land
  The district has the same right and obligation to furnish services to the included land that it previously had to furnish to the excluded land....
• Texas Section 54.748 - Exclusion Of Land For Failure To Provide Sufficient Services; Bonds Outstanding
  (a) This section applies only to a district that has a total area of more than 5,000 acres. (b) The board shall call a hearing...

SUBCHAPTER J SERVICES FOR CERTAIN DEFINED AREAS AND DESIGNATED PROPERTY

• Texas Section 54.749 - Tax Liability Of Excluded Land; Bonds Outstanding
  (a) Land excluded from the district under Section 54.748 that is pledged as security for any outstanding debt of the district remains pledged for its...
• Texas Section 54.801 - Authority To Establish Defined Areas Or Designated Property
  (a) A district that is composed of at least 1,500 acres may define areas or designate certain property of the district to pay for improvements,...
• Texas Section 54.802 - Defining Area And Designating Property To Be Benefited By Improvements
  (a) The board shall adopt a proposed plan that defines the particular area to be taxed by metes and bounds or designates the property to...
• Texas Section 54.803 - Notice Of Adoption Of Plans For Defined Area Or Designated Property And Hearing
  (a) After proposed plans for a defined area or designated property are adopted, the board shall publish notice of the adoption once a week for...
• Texas Section 54.804 - Order Adopting Plans For Defined Area Or Designated Property
  (a) After the hearing is completed, the board may approve the proposed plans for the defined area or designated property or may modify the proposed...
• Texas Section 54.805 - Obtaining Funds To Construct, Administer, Maintain, And Operate Improvements And Facilities In Defined Areas Or Designated Property
  On adoption of the plans as provided by Section 54.804 of this code and voter approval of the plans, the district, under the limitations of...
• Texas Section 54.806 - Procedure For Election
  (a) Before the adopted plans may become effective, they must be approved by the voters in the defined area or within the boundaries of the...
• Texas Section 54.807 - Ballots
  The ballot proposition for an election under this subchapter must be printed to provide for voting for or against defining the area or designating the...
• Texas Section 54.808 - Declaring Result And Issuing Order
  (a) If a majority of the voters voting at the election approve the proposition, the board shall declare the results and, by order, shall establish...
• Texas Section 54.809 - Issuance Of Bonds And Levy Of Tax For Defined Area Or Designated Property
  After the order is recorded, the district may issue its bonds to provide the specific plant, works, and facilities included in the plans adopted for...
• Texas Section 54.810 - Limitation On Other Bond Authorizations
  If the voters of the designated area authorize the issuance of bonds for a particular purpose, a district may not issue bonds from any other...
• Texas Section 54.811 - Pledge Of Faith And Credit
  If at an election, the voters approve the issuance of bonds and the levy of a tax that applies only to a designated area, the...
• Texas Section 54.812 - Notice To Purchasers
  (a) A person who sells or conveys real property located within the designated area of the district shall supplement the notice to purchaser required by...
• Texas Section 54.813 - Municipality's Authority Regarding Defined Area
  (a) This section applies only to a municipality any portion of which is located in a county with a population of more than 1 million...

Last modified: September 28, 2016