Title SD, Special District Local Laws Code

Sec. 7201.005. INITIAL DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 9.12 of the Act enacted by the 80th Legislature, Regular Session, 2007, amending this subsection. (b) The boundaries and field notes contained in Section 9.12 of the Act …

Sec. 7201.0512. INITIAL BOARD TRAINING. (a) Not later than the 60th day after the first date on which all of the initial directors have been appointed, each initial director shall complete at least 12 hours of training on district management and compliance with laws applicable to…

Sec. 7201.0513. EDUCATION PROGRAM. (a) Each director shall complete an education program of not less than 10 hours that includes information on: (1) the history of the district; (2) the district's enabling legislation; (3) Chapters 49 and 65, Water Code, and other laws that apply…

Sec. 7201.053. DISTRICT TREASURER. (a) The board shall elect from among its members one director to serve as district treasurer. (b) The district treasurer shall comply with the training requirements provided by Section 49.1571, Water Code, for an investment officer of a district…

Sec. 7201.054. EDUCATION FOR DIRECTORS. (a) Each director shall complete the education program established under Section 7201.0513 not later than the 90th day after the date on which the director takes the oath of office. (b) The district shall reimburse a director for the reason…

Sec. 7201.055. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of seven directors, each of whom occupies a numbered position on the board and represents a unique subdistrict containing, as near as practicable, one-seventh of the total number of residents in t…

Sec. 7201.0555. ELECTION OF DIRECTORS. (a) The district shall hold an election on the uniform election date in November of each even-numbered year to elect the appropriate number of directors. (b) The district shall contract with the county elections administrator as provided by …

Sec. 7201.056. FILING OF FINANCIAL STATEMENT BY DIRECTOR. (a) A director shall file the financial statement required of state officers under Subchapter B, Chapter 572, Government Code, with the Texas Ethics Commission. (b) Subchapter B, Chapter 572, Government Code: (1) applies t…

Sec. 7201.057. SUBSTANTIAL BUSINESS INTEREST. For purposes of Chapter 171, Local Government Code, a director, in connection with a vote or decision by the board, is considered to have a substantial interest in a business entity if a person related to the director within the third…

Sec. 7201.058. GROUNDS FOR REMOVAL. (a) A director may be removed from the board by a majority of the other directors if the director: (1) does not have at the time of appointment the qualifications required by Section 7201.055(b) or is disqualified from serving under Section 720…

Sec. 7201.059. DISQUALIFICATION OF DIRECTORS. A director is disqualified from serving as a director if: (1) the director is a member or is appointed or elected as a member of the governing body of another political subdivision; (2) the director does not: (A) meet the eligibility …

Sec. 7201.060. AUTOMATIC RESIGNATION OF DIRECTOR ON CANDIDACY FOR OTHER ELECTIVE OFFICE. If a director announces the director's candidacy or becomes a candidate in any general, special, or primary election for any elective office other than the office of director for the district…

Sec. 7201.071. PROHIBITED CONDUCT FOR DIRECTORS AND DISTRICT EMPLOYEES. A director or district employee may not: (1) accept or solicit any gift, favor, or service that: (A) might reasonably influence the director or employee in the discharge of an official duty; or (B) the direct…

Sec. 7201.072. ELIGIBILITY OF DIRECTOR AND GENERAL MANAGER. (a) A person is not eligible to serve as a director or general manager of the district if the person or the person's relative within the third degree by consanguinity or affinity, as determined by Chapter 573, Government…

Sec. 7201.073. GENERAL MANAGER; DUTIES. (a) The board shall employ a person with prior experience and training as general manager. (b) The duties of the general manager include: (1) managing the overall strategy and operations of the district's projects, services, budget, finance…

Sec. 7201.074. LOCATION OF CERTAIN MEETINGS. A meeting at which the board or the general manager discusses the annual budget of the district must be held inside the district. Added by Acts 2021, 87th Leg., R.S., Ch. 474 (S.B. 630), Sec. 6, eff. June 14, 2021.

Sec. 7201.075. PUBLIC ACCESS TO DIRECTOR REPORTS. (a) The district shall post to the district's Internet website and make publicly available each report required to be filed with the Texas Ethics Commission under Title 15, Election Code, by: (1) a director; (2) a candidate for th…

Sec. 7201.101. GENERAL POWERS AND DUTIES. Except as otherwise provided by this chapter, the district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapters 49 and 65, Water Code, applicable to dist…

Sec. 7201.102. PROVISION OF SERVICE. The district shall at all times operate and construct necessary improvements within the certificated areas established by the Public Utility Commission of Texas or the Texas Commission on Environmental Quality to provide uninterrupted, continu…

Sec. 7201.103. INTERLOCAL CONTRACTS. In accordance with Chapter 791, Government Code, the district and the Rio Grande Regional Water Authority may enter into a contract under which the Rio Grande Regional Water Authority may provide administrative or any other contract activities…

Sec. 7201.104. SEARCHABLE DISTRICT EXPENDITURE DATABASE. (a) The district shall establish and post on the district's Internet website a database of district check register reports, including district expenditures and contracts. The database must include the amount, date, descript…

Sec. 7201.201. AUDIT OF DISTRICT. (a) Subchapter G, Chapter 49, Water Code, applies to the district. (b) An individual licensed by the state as a certified public accountant with not less than five years of government accounting experience shall perform the audit required by Sect…

Sec. 7201.202. RECORDS OF DISTRICT. The district shall comply with all rules and regulations pertaining to records preservation, retention, and destruction promulgated by the Texas State Library and Archives Commission under Chapter 441, Government Code, as made applicable to wat…

Sec. 7201.203. MAINTAINING NECESSARY RECORDS. The district shall maintain necessary records and follow cost-of-service principles with respect to provision of retail public water or sewer service or any other service authorized by Chapter 49 or 65, Water Code, or an interlocal co…

Sec. 7201.204. NEWSLETTER, WEBSITE, AND ANNUAL FINANCIAL INFORMATION. (a) The district shall maintain and update monthly an Internet website with current information concerning policies, monthly financial information concerning revenues and expenses, and monthly summaries. (b) No…

Sec. 7201.205. DISCONNECTION OF SERVICE AND CUSTOMER FEES. (a) The district may not disconnect service of a customer for late payment before the 11th day after the date the district notifies the customer of the overdue payment. (b) After a disconnection caused by the customer's l…

Sec. 7201.206. RATES AND FEES FOR SERVICES. (a) The district, in connection with water or sewer retail public utility services, shall establish lifeline, senior citizen, or minimum consumption level rates for services. The rate impact of such services shall be allocated on the ba…

Sec. 7201.207. SERVICE CONTRACT ALLOCATION OF COST AND IMMUNITY FROM CLAIMS. (a) In connection with intergovernmental, interlocal, or wholesale service contracts, including cooperative billing for any contract-based service, the district shall allocate costs of service ratably fo…

Sec. 7201.301. DEFINITIONS. In this subchapter: (1) "Agent" means an individual who exercises discretion in the planning, recommending, selecting, or contracting of a vendor or contractor for the sale, lease, or purchase of real property, goods, or services on behalf of the distr…

Sec. 7201.302. APPOINTMENT OF RECEIVER. (a) At the request of the commission, the attorney general shall bring an action for the appointment of a receiver to collect the assets and carry on the business of the district if the district: (1) received three consecutive audit reports…

Sec. 7201.303. POWERS AND DUTIES OF RECEIVER. (a) The receiver shall execute a bond in an amount to be set by the court to ensure the proper performance of the receiver's duties. (b) After appointment and execution of bond, the receiver shall take possession of the assets of the …

Sec. 7201.304. DISSOLUTION OF RECEIVERSHIP. The court may dissolve the receivership and order the assets and control of the business returned to the district if the district shows good cause for the dissolution of the receivership. Added by Acts 2023, 88th Leg., R.S., Ch. 1088 (S…

Sec. 7201.305. EFFECT ON COMMISSION ENFORCEMENT AUTHORITY. This subchapter does not affect the authority of the commission to pursue an enforcement action against the district or an affiliated person. Added by Acts 2023, 88th Leg., R.S., Ch. 1088 (S.B. 1188), Sec. 5, eff. Septemb…