reglab/statecodes huggingface dataset:
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter A. Public Utility Systems in General › Section 552.003. Acquisition of Existing Public Utility; Payment in Lieu of School Taxes

Sec. 552.003.  ACQUISITION OF EXISTING PUBLIC UTILITY;  PAYMENT IN LIEU OF SCHOOL TAXES.  (a)  If, after May 8, 1943, a municipality acquires an existing public utility, the property of which is subject to taxation by a school district, and the municipality finances the purchase of the utility by issuing revenue bonds, the governing body of the municipality may expressly provide, in an indenture of trust, mortgage, or other lien instrument that evidences the obligation of the municipality for the purchase price, for an annual payment from the income of the utility of an amount equal to the average annual taxes assessed by the school district on the properties of the utility for the five years preceding the year in which the utility is acquired.
(b)  The school board trustees and the governing body of the municipality may agree on an annual payment of a sum in lieu of school taxes.  The sum must be adequate and just under the circumstances of the case considering the school district's needs.
(c)  The obligation of the municipality to make the payment in lieu of taxes is a proper item of municipal operating expenses that, with other operating expenses, is a first lien and charge against the income of the encumbered utility.
(d)  The obligation of the municipality to make the payment in lieu of taxes as provided in the encumbrance agreement is an "expense or obligation" of the utility system as that term is used in statutes authorizing the acquisition of a public utility and the issuance of revenue bonds for the purchase of the utility.  The obligation extends to and binds any municipality that purchases or otherwise acquires an existing public utility in accordance with the terms of the encumbrance agreement or mutual agreements as authorized under Subsections (a) and (b).
(e)  The obligation of the municipality as fixed in the indenture or encumbrance is not impaired, affected, modified, or released by the release or discharge of the encumbrance, and, as long as the municipality owns and operates the public utility, it shall continue to pay to the school district on an annual basis from the revenues of the utility an amount equal to the average annual taxes assessed in behalf of the school district on the properties of the utility for the five years preceding the year in which the utility is acquired by the municipality.  Alternatively, after the release or discharge of the encumbrance, the school board trustees and the governing body of the municipality may agree to provide for a payment in lieu of school taxes as provided by Subsection (b).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.003 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.011. Use of Eminent Domain Power

Sec. 552.011.  USE OF EMINENT DOMAIN POWER.  A municipality that owns its water system may exercise the power of eminent domain to condemn private property located inside or outside the municipal limits to acquire rights-of-way for digging or excavating canals or for laying water mains or other pipelines to bring water into the municipality for public use.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.011 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.013. Water System in Municipalities With Population of More Than 1,000

Sec. 552.013.  WATER SYSTEM IN MUNICIPALITIES WITH POPULATION OF MORE THAN 1,000.  (a)  This section applies to a municipality with a population of more than 1,000 that owns and operates a water system for its residents for fire protection or domestic consumption.  Except as otherwise provided by this section, a municipality's authority under this section is in addition to authority granted by municipal charter.
(b)  The municipality may acquire any interest, including a fee simple interest, in publicly or privately owned property, including riparian rights, located anywhere in the state.  The municipality may acquire the interest by purchase, gift, devise, or eminent domain.
(c)  To furnish an adequate and wholesome supply of water for the residents, the municipality may exercise the power of eminent domain to acquire and condemn public or private property to extend, improve, or enlarge its water system, including water supply reservoirs, riparian rights, standpipes, and watersheds, to construct water supply reservoirs, wells or artesian wells, or dams, and to construct or establish necessary facilities or appurtenances.
(d)  For purposes of this section, the municipality has the same powers relating to eminent domain conferred by statute on water improvement districts or water control and preservation districts or conferred by general law on municipalities.
(e)  The municipality may acquire fee simple title to property under this section if the resolution ordering condemnation proceedings specifies that such an interest is to be acquired.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.013 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.015. Water Supply in Type a General-Law Municipality

Sec. 552.015.  WATER SUPPLY IN TYPE A GENERAL-LAW MUNICIPALITY.  (a)  The governing body of a Type A general-law municipality may provide for a municipal water supply system.
(b)  The municipality may establish and regulate public wells, pumps, cisterns, hydrants, and reservoirs located inside or outside the municipality, including in the municipality's streets, for the convenience of its residents, for firefighting purposes, and for the prevention of unnecessary waste of water.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.015 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.016. Sale or Lease of Water System by Type a General-Law Municipality

Sec. 552.016.  SALE OR LEASE OF WATER SYSTEM BY TYPE A GENERAL-LAW MUNICIPALITY.  (a)  A Type A general-law municipality may not sell or lease a water system and plant owned by the municipality unless the question of the sale or lease is first approved by a majority of the qualified voters of the municipality who vote on the question at a referendum.  The governing body of the municipality may provide for submission of the question at a general or special election.
(b)  Before the 20th day before the date of the election, the proposed lease or sales agreement must be plainly set out in the form of an ordinance or contract and must be filed in the office of the secretary or clerk of the municipality, where it shall be available for public inspection at all times.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.016 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.017. Water Systems in Home-Rule Municipalities

Sec. 552.017.  WATER SYSTEMS IN HOME-RULE MUNICIPALITIES.  (a)  A home-rule municipality may exercise the exclusive right to own, construct, and operate a water system for the use of the municipality and its residents.  The municipality may regulate the system and may prescribe rates for the water furnished.
(b)  The municipality may acquire by purchase, donation, or other means suitable land inside or outside the municipality for construction of the system, including any necessary rights-of-way.
(c)  The municipality may take the necessary action to operate and maintain the system and to require water customers to pay charges imposed for the water furnished.
(d)  The municipality may create, from revenue received from operating the water system, a separate fund dedicated solely to extending, operating, maintaining, repairing, and improving the water system.  This revenue may be pledged for paying the principal of and providing an interest and sinking fund on bonds issued for these purposes, subject to applicable regulations in the municipal charter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 304, Sec. 2, eff. Aug. 28, 1989.
Renumbered from Local Government Code, Section 402.017 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.018. Municipal Contract With Private Entity

Sec. 552.018.  MUNICIPAL CONTRACT WITH PRIVATE ENTITY.  (a)  A municipality that owns and operates its water distribution system may contract with an individual, firm, or corporation that operates without profit to make available for delivery to and use by the municipality all or part of the raw or treated water to be used for the municipal water distribution system.  The service to be provided by the supplier may include the holding of water in reserve to serve needs of the municipality, and charges to the municipality under the contract may include compensation for this service.
(b)  The contract may be for any duration to which the parties agree and may provide for renewal and extension.
(c)  Contractual payments required solely from municipal water system revenue are an operating expense of that system.  The municipality shall set its rates and charges to users of the municipal water system at a level sufficient to pay the maintenance and operating expenses of that system as provided by Section 1502.057, Government Code, and to provide for payment of principal of and interest on any revenue bonds of the municipality payable from water revenue.
(d)  If a contract with a term of more than one year obligates the municipality to pay the consideration from tax revenue, involves the leasing to the supplier of a major part of an existing water production or supply facility belonging to the municipality or involves the right to operate a major part of such a facility, or restricts the municipality from obtaining water from another supplier, the contract is not effective unless approved or authorized at an election on the question.
(e)  If Subsection (d) is not applicable, an election is not required.  The governing body of the municipality may, however, order an election on the question before approving the contract.
(f)  An election under this section shall be held to the extent practicable in the same manner as an election for the issuance of municipal bonds under Chapter 1251, Government Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.347, eff. Sept. 1, 2001.
Renumbered from Local Government Code, Section 402.018 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.0205. Revenue Bonds to Pay for District Services Under Contract

Sec. 552.0205.  REVENUE BONDS TO PAY FOR DISTRICT SERVICES UNDER CONTRACT.  (a)  In this section, "district" has the meaning assigned by Section 49.001, Water Code.
(b)  If a district contracts with a municipality to provide all or part of the water or wastewater services to the municipality, the municipality may issue bonds payable from the revenues of its water and wastewater system to provide funds to make payments owed by the municipality to the district under the contract.
Added by Acts 2001, 77th Leg., ch. 1423, Sec. 36, eff. June 17, 2001.
Renumbered from Local Government Code, Section 402.0205 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter B. Acquisition of Interests for Drainage, Sewage, or Water Supply Purposes › Section 552.021. Contract Between District and Municipality With Population of More Than 900,000

Sec. 552.021.  CONTRACT BETWEEN DISTRICT AND MUNICIPALITY WITH POPULATION OF MORE THAN 900,000.  (a)  In this section, "district" means a conservation and reclamation district created under Article XVI, Section 59, of the Texas Constitution.
(b)  A municipality with a population of more than 900,000 that owns and operates a municipal water system may:
(1)  enter into a contract or joint enterprise with a district for the conveyance, transportation, and distribution of water for or on behalf of the municipality;  or
(2)  contract to sell water to a district and repurchase all or part of the water at one or more designated points on the district's conveyance, transportation, and distribution system.
(c)  A contract under Subsection (b) may provide that municipal payments to the district under the contract:
(1)  are an operating expense of the municipal water system;  or
(2)  are payable from surplus or other funds of the municipal water system, from the revenues of specified municipal water sales contracts, or from other sources.
(d)  If the contract under Subsection (b) obligates the municipality to pay any of the consideration from tax revenue, it must first be approved at an election ordered and conducted in the same manner as a bond election.
(e)  A contract under Subsection (b) may be made for any period not to exceed 40 years and may provide that it continues in effect until payment of:
(1)  all bonds issued by the district to finance conveyance, transportation, or distribution facilities, or the extension, enlargement, or improvement of those facilities;  and
(2)  any bonds issued to refund bonds described by Subdivision (1).
(f)  A municipality covered by this section may contract for the sale of water to industrial and commercial customers or municipal corporations or political subdivisions as provided by ordinance.  A contract under this subsection may not be for a term longer than 40 years.
(g)  A municipality electing to make a contract under this section is governed solely by this section regardless of another statute, charter provision, or ordinance to the contrary.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.021 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.041. Short Title

Sec. 552.041.  SHORT TITLE.  This subchapter may be cited as the Municipal Drainage Utility Systems Act.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.041 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.042. Legislative Finding

Sec. 552.042.  LEGISLATIVE FINDING.  (a)  The legislature finds that authority is needed to:
(1)  permit municipalities to establish a municipal drainage utility system within the established service area;
(2)  provide rules for the use, operation, and financing of the system;
(3)  protect the public health and safety in municipalities from loss of life and property caused by surface water overflows, surface water stagnation, and pollution arising from nonpoint source runoff within the boundaries of the established service area;
(4)  delegate to municipalities the power to declare, after a public hearing, a drainage system created under this subchapter to be a public utility;
(5)  prescribe bases on which a municipal drainage utility system may be funded and fees in support of the system may be assessed, levied, and collected;
(6)  provide exemptions of certain persons from this subchapter;  and
(7)  prescribe other rules related to the subject of municipal drainage.
(b)  This subchapter is remedial.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1230, Sec. 1(b), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.042 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.043. Application of Subchapter to Municipalities

Sec. 552.043.  APPLICATION OF SUBCHAPTER TO MUNICIPALITIES.  This subchapter applies to any municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1230, Sec. 1(c), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.043 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.045. Adoption of System; Rules

Sec. 552.045.  ADOPTION OF SYSTEM;  RULES.  (a)  Subject to the requirements in Subsections (b) and (c), the governing body of the municipality, by a majority vote of its entire membership, may adopt this subchapter by an ordinance that declares the adoption and that declares the drainage of the municipality to be a public utility.
(b)  Before adopting the ordinance, the governing body must find that:
(1)  the municipality will establish a schedule of drainage charges against all real property in the proposed service area subject to charges under this subchapter;
(2)  the municipality will provide drainage for all real property in the proposed service area on payment of drainage charges, except real property exempted under this subchapter;  and
(3)  the municipality will offer drainage service on nondiscriminatory, reasonable, and equitable terms.
(c)  Before adopting the ordinance, the governing body must publish a notice in a newspaper of general circulation in the municipality stating the time and place of a public hearing to consider the proposed ordinance.  The proposed ordinance must be published in full in the notice.  The governing body shall publish the notice three times before the date of the hearing.  The first publication must occur on or before the 30th day before the date of the hearing.
(d)  After passage of the ordinance adopting this subchapter, the municipality may levy a schedule of drainage charges.  The municipality must hold a public hearing on the charges before levying the charges.  The municipality must give notice of the hearing in the manner provided by Subsection (c). The proposed schedule of drainage charges, as originally adopted or as revised, must be published in the notice.
(e)  The municipality by ordinance may adopt and enforce rules as it considers appropriate to operate the drainage utility system. Provided, however, that the prohibitions contained in Section 212.003(a) of the Local Government Code relating to quasi-zoning and other land use regulations in the extraterritorial jurisdiction of a municipality shall apply to any rule or ordinance adopted or enacted by the municipality under this Act, except that rates may be established using impervious cover measurements relating to land use and building size.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1230, Sec. 1(e), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.045 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.0451. Extension of Service Area by Certain Municipalities

Sec. 552.0451.  EXTENSION OF SERVICE AREA BY CERTAIN MUNICIPALITIES.  (a)  A municipality with a population of more than 900,000 located in one or more counties with a population of less than 1.5 million as of the 1990 federal census may extend its service area:
(1)  into the boundaries of another municipality if:
(A)  before the extension water from the municipality to which the service area is to be extended regularly drains into the drainage system of the municipality extending its service area;  and
(B)  the extension is provided for by an interlocal agreement between the municipalities;  or
(2)  beyond its municipal boundaries into an unincorporated area of its extraterritorial jurisdiction if:
(A)  before the extension water from the area to which the service area is to be extended regularly drains into the drainage system of the municipality extending its service area;  and
(B)  the extension is provided for by an interlocal agreement between the municipality extending its service area and the county containing the area to which the service area is to be extended.
(b)  An interlocal agreement under Subsection (a) may:
(1)  contain provisions necessary for the operation of a drainage system within the area to which the service area is extended;  and
(2)  provide for charges for treatment of drainage water and methods of assessment of the charges to an owner of a lot or tract of benefitted property in the area to which the service area is extended.
(c)  Charges and methods of assessment agreed to under Subsection (b)(2) must comply with Section 552.047.
Added by Acts 1993, 73rd Leg., ch. 773, Sec. 2, eff. June 18, 1993.
Renumbered from Local Government Code, Section 402.0451 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(6), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.046. Incorporation of Existing Facilities

Sec. 552.046.  INCORPORATION OF EXISTING FACILITIES.  The municipality may incorporate existing drainage facilities, materials, and supplies into the drainage utility system.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.046 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.047. Drainage Charges

Sec. 552.047.  DRAINAGE CHARGES.  (a)  The governing body of the municipality may charge a lot or tract of benefitted property for drainage service on any basis other than the value of the property, but the basis must be directly related to drainage and the terms of the levy, and any classification of the benefitted properties in the municipality must be nondiscriminatory, equitable, and reasonable.
(b)  In setting the schedule of charges for drainage service, the governing body must base its calculations on an inventory of the lots and tracts within the service area.  The governing body may use approved tax plats and assessment rolls for that purpose.  The governing body may also consider the land use made of the benefitted property.  The governing body may consider the size, in area, the number of water meters, and topography of a parcel of benefitted property, in assessing the drainage charge to the property.
(c)  The governing body may fix rates for drainage charges in advance and may change, adjust, and readjust the rates and charges for drainage service from time to time.  The rates must be equitable for similar services in all areas of the service area.
(d)  Unless a person's lot or tract is exempted under this subchapter, the person may not use the drainage system for the lot or tract unless the person pays the full, established, drainage charge.
(e)  Users residing within the established service area, but outside the municipality's boundaries, may appeal rates established for drainage charges under Section 13.043(b), Water Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991;  Acts 1995, 74th Leg., ch. 76, Sec. 11.259, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 633, Sec. 2, eff. Sept. 1, 1997.
Renumbered from Local Government Code, Section 402.047 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 170 (H.B. 1600), Sec. 2.87, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 171 (S.B. 567), Sec. 87, eff. September 1, 2013.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.048. Billings; Deposit Not Required

Sec. 552.048.  BILLINGS;  DEPOSIT NOT REQUIRED.  (a)  The municipality may bill drainage charges, identified separately, with the municipality's other public utility billings.  Any delinquent billings may be collected on the benefitted property under the procedure prescribed by this subchapter.
(b)  The municipality may not require a deposit for drainage service as a precondition to accepting surface flow in the drainage utility system.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.048 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.049. Segregation of Income

Sec. 552.049.  SEGREGATION OF INCOME.  The income of a drainage utility system must be segregated and completely identifiable in municipal accounts.  If drainage charges are solely for the cost of service, the municipality may transfer the charges in whole or in part to the municipal general fund, except for any part collected outside municipal boundaries and except for any part pledged to retire any outstanding indebtedness or obligation incurred, or as a reserve for future construction, repair, or maintenance of the drainage system.  If the governing body has levied, in the drainage charge, an amount in contribution to the funding of future system improvements, including replacement, new construction, or extension, that amount is not transferable to the general fund.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1230, Sec. 1(f), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.049 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.050. Delinquent Charges

Sec. 552.050.  DELINQUENT CHARGES.  (a)   Any charge due hereunder which is not paid when due may be recovered in an action at law by the municipality.  In addition to any other remedies or penalties provided at law or in this subchapter, failure of a user of the municipal utilities within the service area to pay the charges promptly when due shall subject such user to discontinuance of any utility services provided by the municipality, and municipalities are hereby empowered to enforce this provision against delinquent users.  The employees of the utility established in accordance with this subchapter shall have access, at all reasonable times, to any benefitted properties served by the drainage utility for inspection or repair or for the enforcement of the provisions of this subchapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.050 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.051. Drainage Revenue Bonds

Sec. 552.051.  DRAINAGE REVENUE BONDS.  By majority vote of the governing body, the municipality may issue drainage revenue bonds.  The municipality may use Chapter 1201, Government Code. In addition, the municipality may pledge income received by contracts for the provision of drainage to other governments or governmental subdivisions located inside or outside the service area.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991;  Acts 2001, 77th Leg., ch. 1420, Sec. 8.350, eff. Sept. 1, 2001.
Renumbered from Local Government Code, Section 402.051 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.052. Discontinuation of Drainage System

Sec. 552.052.  DISCONTINUATION OF DRAINAGE SYSTEM.  (a)  If, after at least five years of substantially continuous operation of a municipal drainage system, the governing body of the municipality determines that the system should be discontinued, that the powers under this subchapter should be revoked, and that provision for municipal drainage should be made by other revenues, the governing body may adopt an ordinance to that effect after providing notice and a public hearing as provided by Section 552.045.
(b)  If the municipality discontinues a system under Subsection (a), it may not adopt a system under this subchapter for at least five years after the discontinuation.
(c)  A discontinuation does not affect a written obligation incurred by the municipality for funding or for the purchase of equipment, materials, or labor for the drainage system that is not then fully paid or otherwise discharged.
(d)  A claim for damages based on an alleged failure of the drainage system that is filed with the municipality before the adoption of the ordinance discontinuing the drainage system is not abated by the discontinuation.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1230, Sec. 1(g), eff. Aug. 28, 1989;  Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.052 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(7), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.053. Exemptions

Sec. 552.053.  EXEMPTIONS.  (a)  A governmental entity or person described by Subsection (b) and a lot or tract in which the governmental entity or person holds a freehold interest may be exempt from this subchapter and all ordinances, resolutions, and rules adopted under this subchapter.
(b)  The following may be exempt:
(1)  this state;
(2)  a county;
(3)  a municipality; or
(4)  school districts and open-enrollment charter schools.
(c)  The following shall be exempt from the provisions of any rules or ordinances adopted by a municipality pursuant to this Act:
(1)  property with proper construction and maintenance of a wholly sufficient and privately owned drainage system;
(2)  property held and maintained in its natural state, until such time that the property is developed and all of the public infrastructure constructed has been accepted by the municipality in which the property is located for maintenance;  and
(3)  a subdivided lot, until a structure has been built on the lot and a certificate of occupancy has been issued by the municipality in which the property is located.
(d)  A municipality may exempt property owned by a religious organization that is exempt from taxation pursuant to Section 11.20, Tax Code, from all or a portion of drainage charges under this subchapter, as the governing body of the municipality considers appropriate.
(d-1)  A municipality may exempt property used for cemetery purposes from drainage charges under Section 552.047 if the cemetery is closed to new interments and does not accept new burials.
(e)  The following property is exempt from drainage charges under Section 552.047 and all ordinances, resolutions, and rules adopted under this subchapter:
(1)  property owned by a county in which a municipality described by Section 552.044(8)(A) is located;
(2)  property owned by a school district located wholly or partly in a municipality described by Section 552.044(8)(A); and
(3)  property owned by a municipal housing authority of a municipality described by Section 552.044(8)(A).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991;  Acts 1993, 73rd Leg., ch. 674, Sec. 2, eff. Aug. 30, 1993;  Acts 1993, 73rd Leg., ch. 773, Sec. 3, eff. June 18, 1993.
Renumbered from Local Government Code, Section 402.053 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 278 (S.B. 874), Sec. 1, eff. May 30, 2009.
Acts 2009, 81st Leg., R.S., Ch. 539 (S.B. 1522), Sec. 1, eff. June 19, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 16.006, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1230 (S.B. 609), Sec. 1, eff. June 17, 2011.
Acts 2015, 84th Leg., R.S., Ch. 161 (H.B. 1662), Sec. 1, eff. May 28, 2015.
Acts 2023, 88th Leg., R.S., Ch. 699 (H.B. 1707), Sec. 3, eff. June 12, 2023.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter C. Municipal Drainage Utility Systems › Section 552.054. Effect of Subchapter

Sec. 552.054.  EFFECT OF SUBCHAPTER.  This subchapter does not:
(1)  enhance or diminish the authority of a home-rule municipality to establish a drainage utility under Article XI, Section 5, of the Texas Constitution;
(2)  preclude a municipality from utilizing revenues, other than drainage utility revenues, for drainage purposes;  or
(3)  preclude a municipality from imposing impact fees or other charges for drainage authorized by law.
Added by Acts 1989, 71st Leg., ch. 1230, Sec. 1(h), eff. Aug. 28, 1989.  Amended by Acts 1991, 72nd Leg., ch. 852, Sec. 1, eff. June 16, 1991.
Renumbered from Local Government Code, Section 402.054 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter D. Improvements to Water and Sewer Systems in Certain Municipalities › Section 552.061. Application of Subchapter to Certain Municipalities

Sec. 552.061.  APPLICATION OF SUBCHAPTER TO CERTAIN MUNICIPALITIES.  To exercise authority under this subchapter, a municipality must:
(1)  have all or a major part of its territory in a county with a population of more than 25,000; or
(2)  be located in a county in which at least 60 percent of the total area is regularly covered by water and in which is located the majority of the total area of a wildlife refuge for species of wildlife on the federal endangered species list.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1989, 71st Leg., ch. 1, Sec. 83(b), eff. Aug. 28, 1989.
Renumbered from Local Government Code, Section 402.061 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter D. Improvements to Water and Sewer Systems in Certain Municipalities › Section 552.062. Definitions

Sec. 552.062.  DEFINITIONS.  In this subchapter:
(1)  "Benefitted property" means a lot or tract to which water or sewer service is made available under this subchapter.
(2)  "Cost of improvement" includes engineering expenses, fiscal fees, and other expenses incident to the construction of improvements to the water system, sewer system, or both systems in addition to the other costs of the improvements.
(3)  "Sewer system improvements" means the laying of mains, laterals, and extensions and all appliances and necessary adjuncts required for the sanitary disposal of excreta and offal from the area in which the improvements are made but does not include off-site mains, laterals, and extensions and appliances and adjuncts necessary to connect the improvements to the existing sewer system operated by the municipality.
(4)  "Water system improvements" means the laying of a water main with gates, tees, crosses, taps, meter boxes, manholes, or extensions, and any other appurtenances required to furnish water for domestic or commercial purposes to the area in which the improvements are constructed, but does not include any off-site appurtenances required to connect the improvements to the existing water system operated by the municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.062 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter D. Improvements to Water and Sewer Systems in Certain Municipalities › Section 552.063. Municipal Authority

Sec. 552.063.  MUNICIPAL AUTHORITY.  (a)  The municipality may improve a water works system or sanitary sewer system within the municipal boundaries by constructing, extending, enlarging, or reconstructing the system.
(b)  The governing body of the municipality may determine the need for improvements, may order the construction of the necessary improvements, and may contract for the improvements.
(c)  The governing body may act under this subchapter through resolution, motion, order, or ordinance unless an ordinance is specifically required.  The governing body may adopt, by resolution or ordinance, any rules appropriate to the exercise of its powers under this subchapter, including rules relating to notice and hearing under this subchapter.
(d)  The governing body may not assess a special tax or assessment against a railway, street railway, or interurban right-of-way to defray a portion of the cost of the improvements to the municipal water or sanitary sewer system.
(e)  This subchapter does not affect the law of this state relating to the duty of a municipality to furnish water or sewer service in its proprietary capacity.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.063 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter D. Improvements to Water and Sewer Systems in Certain Municipalities › Section 552.064. Declaration; Costs; Estimated Assessment

Sec. 552.064.  DECLARATION;  COSTS;  ESTIMATED ASSESSMENT.  (a)  In the ordinance or resolution that declares the need for the improvements, the municipality:
(1)  must state the general nature and extent of the improvements;  and
(2)  may direct that detailed plans, specifications, and cost estimates for the improvements be prepared and submitted to the governing body.
(b)  The cost of the improvements may be paid wholly by the municipality or partly by the municipality and partly by the benefitted property and its owners.  If any part of the cost is to be paid by the benefitted property and its owners, the governing body of the municipality must prepare an estimate of the cost of the improvements.  The governing body must prepare the estimate before any improvements are constructed, either before or after bids for the proposed construction are received by the municipality, but before the hearing required under this subchapter is held.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.064 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter D. Improvements to Water and Sewer Systems in Certain Municipalities › Section 552.065. Assessment Provisions

Sec. 552.065.  ASSESSMENT PROVISIONS.  (a)  By ordinance, the governing body of the municipality may:
(1)  assess not more than nine-tenths of the estimated cost of improvements against the benefitted property and the owners of that property;
(2)  provide the time, terms, and conditions of payment and defaults of the assessments;  and
(3)  prescribe the interest rate on the assessment, not to exceed 10 percent a year.
(b)  The governing body may issue in the name of the municipality assignable certificates in evidence of assessments levied under this section that declare the lien on the property and the liability of the owners whether named correctly or not.  The governing body may set the terms and conditions of those certificates.  If a certificate substantially states that the required proceeding relating to improvements referred to in the certificate has been held in compliance with law and that all the prerequisites to the fixing of an assessment lien against the property described in the certificate and the personal liability of the owner of the property have been performed, the certificate is prima facie evidence of all the matters recited in the certificate, and further proof is not required.  In a suit on an assessment or reassessment in evidence of which a certificate may be issued under this subchapter, it is sufficient to allege the substance of the recitals in the certificate and that those recitals are true.  Further allegations with reference to the proceedings relating to the assessment or reassessment are not necessary.
(c)  An assessment against benefitted property under this section is collectable with interest, cost of collection, and reasonable attorney's fees.  The assessment is a first and prior lien on the assessed property and the lien takes effect on the date that a notice of proposed improvements is made under Section 552.067.  The lien is superior to any other lien or claim except a state, county, school district, or municipal property tax lien.  The assessment is a personal liability and charge against the owners of the assessed property on the date on which the lien takes effect, whether or not the owners are named in a notice, instrument, certificate, or ordinance provided for under this subchapter.
(d)  The municipality may make assessments against several parcels of benefitted property in one assessment if the parcels are owned by the same person.  The municipality may jointly assess benefitted property owned jointly by one or more persons.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.065 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(8), eff. April 1, 2009.
2023 Texas Statutes › Local Government Code › Title 13 - Water and Utilities › Subtitle A - Municipal Water and Utilities › Chapter 552 - Municipal Utilities › Subchapter D. Improvements to Water and Sewer Systems in Certain Municipalities › Section 552.066. Apportionment of Assessments

Sec. 552.066.  APPORTIONMENT OF ASSESSMENTS.  (a)  Except as provided by Subsection (c), the municipality shall separately compute the cost of the water or sewer improvements and shall apportion the part of the cost of those improvements that may be assessed against the benefitted property and the owners of the property, among the parcels of the benefitted property and the owners, in accordance with the front foot rule.
(b)  Under the front foot rule, the governing body of the municipality shall assess each parcel of benefitted property according to the number of lineal feet of the parcel that abuts on a public street, irrespective of the location of improvements constructed under this subchapter relating to that parcel if the improvements provide water or sewer service to the assessed parcel.  The governing body shall assess a corner lot based on the shorter side of the lot that abuts on a public street.
(c)  If, in the opinion of the governing body, application of that rule would result in injustice or inequality in particular cases, the governing body shall apportion and assess those costs in the proportion it considers just and equitable, taking into account the special benefits in enhanced value to be received by those owners, and shall adjust the apportionment so as to produce a substantial equality of benefits received and burdens imposed.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Renumbered from Local Government Code, Section 402.066 by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.76(a)(2), eff. April 1, 2009.