HB 3154

relating to the creation, powers, duties, and financing of the Wise
Regional Water District; granting a limited power of eminent
domain; providing authority to issue bonds; providing authority to
impose fees; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle X, Title 6, Special District Local Laws
Code, is amended by adding Chapter 11021 to read as follows:
CHAPTER 11021.  WISE REGIONAL WATER DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 11021.0101.  DEFINITIONS.  In this chapter:
(1)  "Basic service area" means the geographic area in
the corporate limits of all participants and all customers and the
areas that are served by those members and customers.
(2)  "Board" means the board of directors of the
(3)  "Contract member" means a governmental entity that
provides retail utility service in its boundaries, that contracts
with the district not later than the end of the second year after
the effective date of the Act enacting this chapter to preserve the
option to become a participant in the 10-year period following the
effective date of the Act enacting this chapter, and that agrees to
pay an annual pro rata share of the administrative and planning
costs of the district that are unrelated to capital projects to be
financed by the district, provided that the share of administrative
and planning costs may not exceed for a contract member 50 cents per
capita unless otherwise agreed by at least 75 percent of the
contract members having, collectively, at least 75 percent of the
population represented by all the contract members.
(4)  "County" means Wise County, Texas.
(5)  "Customer" means a wholesale user of the water or
wastewater services provided by the district that provides retail
utility service in the boundaries of the user.
(6)  "District" means the Wise Regional Water District.
(7)  "Participant" means a governmental entity that
provides retail utility service in the entity's boundaries and that
contracts with the district for the construction of and payment for
the water or wastewater projects to be financed by the district.
(8)  "Service area" means that geographic area in the
(9)  "Subdistrict" means a subdistrict authorized to be
Sec. 11021.0102.  LEGISLATIVE FINDINGS.  (a)  The
legislature finds that the creation and establishment of the
district and the creation and establishment of subdistricts in the
district are essential to the accomplishment of the purposes of
Section 59, Article XVI, Texas Constitution.
(b)  The legislature finds that all of the land and other
property included in the boundaries of the district and in the
boundaries of a subdistrict will be benefited by the improvements,
works, and projects that are to be provided by the district and by
subdistricts under the powers conferred on the district and
subdistricts by this chapter, and that the district is created to
serve a public use and benefit and any subdistrict created will
serve a public use and will be for a public purpose.
Sec. 11021.0103.  CREATION.  (a)  A conservation and
reclamation district is created under Section 59, Article XVI,
Texas Constitution.  The district shall be known as the Wise
(b)  An election confirming the creation of the district is
Sec. 11021.0104.  BOUNDARIES.  (a)  Except as provided by
Subsection (b), the boundaries of the district are coextensive with
(b)  The boundaries of the district also include the entire
area in the boundaries of any participant or contract member, a
portion of whose incorporated limits is partially in the boundaries
of the county as those boundaries existed on the effective date of
Sec. 11021.0105. EXPANSION OF DISTRICT. (a)  The territory of
the district may be expanded to include the area within the
boundaries of a municipality outside the county, if the district
and the municipality execute a contract member's contract or a
participating member's contract not later than the second
anniversary of the effective date of the Act enacting this chapter.
(b)  Approval of a contract member's contract between the
district and the municipality requires a three-quarters majority
vote of the district's board of directors.  Approval of a
participating member's contract between the district and the
municipality requires a three-quarters majority vote of the
weighted vote of all directors eligible to vote.
SUBCHAPTER B.   ADMINISTRATIVE PROVISIONS
Sec. 11021.0201.  BOARD OF DIRECTORS.  (a)  The district is
governed by a board of directors.  A director may not be an elected
official of any governmental entity that has the authority to
(b)  Directors shall be appointed by the commissioners court
of the county and the governing bodies of the participants and
contract members in the manner provided by Section 11021.0202.
(c)  A director is subject to removal with or without cause
by action of the governing body of the entity that originally
(d)  The board has exclusive authority to manage the district
Sec. 11021.02015.  INITIAL BOARD.  (a)  The initial board
(1)  the county judge of the county shall appoint one
(2)  each county commissioner serving on the Wise
County Commissioners Court shall appoint one director.
(b)  The initial directors serve until the date the directors
are appointed under Section 11021.0202.
(c)  This section expires on the second anniversary of the
effective date of the Act enacting this chapter.
Sec. 11021.0202.  COMPOSITION OF BOARD.  (a)  Each
participant or contract member shall appoint one member to the
board and the Commissioners Court of Wise County shall appoint one
(b)  The Commissioners Court of Wise County may appoint one
additional member to the board if the board determines that such an
appointment is in the best interests of the district and that the
directors to be appointed by the commissioners court are selected
from a list of nominees submitted to the commissioners court by the
(c)  An entity that contracts with the district more than
five years after the effective date of the Act enacting this chapter
is entitled to representation on the board only under the rules
established by the board for the admission of board members and
member entities.  For a contract member to which this section
applies, the board may establish rules regarding:
(1)  appointing members to the board by the contract
(2)  voting authority of a board member appointed by
(3)  for a member appointed by the contract member,
voting weight for that board member appointed by the contract
Sec. 11021.0203.  VOTES OF DIRECTORS.  (a)  Directors who are
appointed by the participants are entitled to vote on all matters
before the board, including all projects to be considered by the
board in all service areas of the district, regardless of whether
the participant is participating in the project.
(b)  A board vote concerning the authorization of and
financial commitments for capital projects must be determined as
(c)  Each participant that is receiving or that has
contracted to receive service or capacity, including that service
or capacity to be received as a result of the capital project then
under consideration, has one vote for each four million gallons per
day, or portion of that amount, of service or capacity for which the
participant has contracted with the district.  The amount for which
the participant has contracted shall be determined by taking into
account the amount of service or capacity the participant receives
from a water treatment plant, a wastewater treatment plant, or a raw
water supply, or any combination of the preceding.
(d)  Each participant with a population of 50,000 or more is
entitled to one extra vote that may be cast on those matters
(e)  Participation in capital projects financed by the
district through the issuance of special facility bonds entitles
that entity to be classified as a participant, but does not entitle
that entity to receive any credit toward the four million gallons
per day of service or capacity standard established in Subsection
(f)  A director who is appointed by a contract member that is
not a participant is entitled to one vote on all matters before the
board except those matters that require a weighted vote.
(g)  Regardless of the date on which an entity became a
member, the entity is not entitled to a number of weighted votes
that exceeds 25 percent of the weighted votes of all directors
eligible to vote for a capital project.
(h)  A director who is appointed by a contract member that is
not a participant is entitled to one vote on all matters before the
board except those matters that require a weighted vote.
Sec. 11021.0204.  TERMS OF OFFICE.  (a)  Except as otherwise
provided by this chapter, directors serve staggered four-year terms
in accordance with the procedures to be adopted by the initial
(b)  A director may serve consecutive terms.
Sec. 11021.0205.  DIRECTOR QUALIFICATIONS AND COMPENSATION.
(a)  A director must be a qualified voter who resides in the
district and must qualify to serve by taking the oath of office and
furnishing evidence of the person's qualifications to serve on the
board consistent with the requirements of this chapter.
(b)  A director is not entitled to receive compensation for
serving as a director, but may be reimbursed for actual reasonable
expenses necessarily incurred on behalf of the district or in the
Sec. 11021.0206.  EX OFFICIO BOARD MEMBERS.  The board may
establish a category of ex officio directors and may provide for the
duties and responsibilities of the ex officio members in bylaws or
rules to be adopted by the board.
Sec. 11021.0207.  BOARD PROCEDURES.  (a)  The board shall
prepare and adopt bylaws for the district, and shall hold regular,
special, or emergency meetings at times and on days or dates as
(b)  A majority of the directors constitutes a quorum for the
transaction of district business, and approval of at least a
majority of the directors present at a meeting is necessary for
approval of any matter coming before the board, except in a
situation in which a weighted vote is required.  If a weighted vote
is required, a majority of the weighted vote of all directors
eligible to vote is necessary for approval of any matter coming
(c)  The board shall provide in its bylaws for the method of
execution for all contracts, the signing of checks, and the
handling of any other matters approved by the board.  The board
shall elect new officers annually.
(d)  The board shall designate in the bylaws a regular place
Sec. 11021.0208.  BOARD OFFICERS.  (a)  The officers of the
board include the president, one or more vice presidents, a
(b)  The board shall elect a president and any vice president
(c)  The board may appoint a secretary, one or more assistant
secretaries, a treasurer, an assistant treasurer, and other
officers that are necessary.  The secretary, assistant secretaries,
treasurer, and assistant treasurer are not required to be members
(d)  The president is the chief executive officer of the
district and shall preside over the meetings of the board.  A vice
president may perform any duty and exercise any power of the
president when the president is absent or fails, refuses, or is
(e)  The secretary or one of the assistant secretaries is
responsible for keeping the minutes of the meetings of the board and
all official records of the board and may certify the accuracy or
authenticity of any actions, proceedings, minutes, or records of
(f)  The duties of the other officers may be prescribed by
Sec. 11021.0209.  EMPLOYEES.  The board may appoint and
employ any person, firm, corporation, partnership, and other entity
considered necessary to conduct the affairs of the district,
including engineers, attorneys, financial advisors, accountants, a
general manager, and other employees or consultants.
Sec. 11021.0210.  CUSTOMER ADVISORY COUNCIL.  (a)  The board
shall establish a customer advisory council composed of one
representative from each customer receiving service from the
(b)  The members of the customer advisory council may act as
provided in the bylaws of the district or rules of the board, but
the customer advisory council may not vote on matters coming before
Sec. 11021.0211.  CONFLICT OF INTEREST.  The members of the
board and all other officers of the district are subject to the
conflict of interest provisions of Chapter 572, Government Code, in
the same manner as an elected or appointed officer expressly
SUBCHAPTER C.  POWERS AND DUTIES
Sec. 11021.0301.  GENERAL POWERS AND DUTIES.  (a)  Subject to
specific provisions of this chapter, the district and the board
have the rights, powers, privileges, authority, and functions
granted by Section 59, Article XVI, Texas Constitution, including
the rights, powers, privileges, authority, and functions conferred
by Chapters 49 and 54, Water Code, relating to municipal utility
districts, together with the additional rights, powers,
privileges, authority, and functions authorized by this chapter.
(b)  The district may not levy or collect ad valorem taxes.
(c)  If any general law is in conflict or inconsistent with
this chapter, this chapter prevails.
Sec. 11021.0302.  PLANNING AND ACQUISITION OF WORKS AND
FACILITIES.  The district may plan, lay out, purchase, construct,
acquire, own, operate, maintain, repair, and improve, inside or
outside its boundaries, any works, improvements, facilities,
plants, equipment, and appliances, including any administrative
properties and facilities, any permits, franchises, licenses, or
contract or property rights, and any levees, drains, waterways,
lakes, reservoirs, channels, conduits, sewers, dams, stormwater
detention facilities, or other similar facilities and
improvements, whether for municipal, industrial, agricultural,
flood control, or related purposes, that are necessary, helpful, or
incidental to the exercise of any right, power, privilege,
authority, or function provided by this chapter, including
supplying water for municipal, domestic, and industrial uses, and
all other beneficial uses or controls; collecting, treating,
processing, disposing of, and controlling all domestic or
industrial wastes whether in fluid, solid, or composite state;
gathering, conducting, diverting, controlling, and treating local
stormwater or local harmful excesses of water in the boundaries of
the district; and irrigating and altering land elevations in the
boundaries of the district where needed.
Sec. 11021.0303.  ACQUISITION OF PROPERTY; EMINENT DOMAIN.
(a)  The district may acquire, by purchase or by exercise of the
power of eminent domain, any land, easements, rights-of-way, or
other property or improvements inside or outside the boundaries of
the district, including land above the probable high water line
around any reservoirs in which the district has an ownership or
operational interest, that are needed or are appropriate to carry
out the powers and functions of the district.
(b)  The district may exercise the power of eminent domain in
the manner and with the privileges, rights, and immunities
available under the laws of this state, including Chapter 21,
(c)  The district may not exercise the power of eminent
(1)  any property located in a municipality located
wholly or partly in the county without prior consent by resolution
of the governing body of the municipality in whose jurisdiction the
(2)  any property located outside the county to be used
as a water supply reservoir without the consent of the county or
counties in which the reservoir is to be located;
(3)  any property owned by the county, any
municipality, or any agency or instrumentality of a county or
(4)  a waterworks system or a wastewater system that is
owned by a municipality, a political subdivision of the state,
private persons, or a nonprofit corporation.
Sec. 11021.0304.  ADDITIONAL GENERAL AUTHORITY.  The
(1)  acquire, construct, improve, maintain, and
operate wholesale water and wastewater systems and treatment works
necessary to provide service to district customers; and
(2)  acquire, construct, improve, and maintain any
water supply, reservoir, or interest in any water supply or
reservoir necessary to fully implement the powers and duties of the
district as provided by this chapter.
Sec. 11021.0305.  PROVIDING SERVICES OUTSIDE DISTRICT.  On
approval of the board of directors, the district may elect to
provide water, wastewater, solid waste, or nonhazardous liquid
waste services outside its service area, but the district may not be
compelled to supply those services for use outside its service area
except by order of the state agency that has jurisdiction over those
Sec. 11021.0306.  RIGHTS OF BASIC SERVICE AREA.  The basic
service area has the primary right to water or wastewater treatment
capacity and to water supply in each classification that the
district secures under permit from the state agency that has
Sec. 11021.0307.  RIGHTS PROTECTED.  (a)  This chapter does
not compel any customer or prospective customer to secure water or
wastewater service from the district, except under contracts
(b)  This chapter does not alter any outstanding permit,
contract, or other obligation, nor does this chapter in any manner
impair the rights of any entity to own, operate, maintain, or
otherwise use or control any water, wastewater, solid waste, or
liquid waste system in accordance with the law applicable to that
Sec. 11021.0308.  DISPOSAL SYSTEMS.  (a)  The district may
exercise the powers needed to establish, acquire, operate, and
maintain a regional solid waste disposal system and a nonhazardous
(b)  The district shall provide the services afforded by a
(1)  any user as determined by the board if the services
are to be rendered in the basic service area of the district; and
(2)  any customer if the services are to be rendered
outside the basic service area.
Sec. 11021.0309.  WATER QUALITY RULES.  (a)  The district may
adopt and enforce rules to protect water quality in and flowing to
or from the areas in or surrounding the lakes, reservoirs, and other
sources of water supply owned, operated, or controlled by the
(b)  The rules shall be adopted for the purpose of the
prevention of waste or unauthorized use of water controlled by the
district and of the regulation of privileges on any land,
reservoir, or easement owned or controlled by the district.
(c)  The rules shall be adopted and enforced in accordance
with Subchapter D, Chapter 54, Water Code, and must be consistent
with the applicable rules of any state agency that has jurisdiction
over those sources of water supply.
(d)  Under a contract with a county, municipality, or water
district, the district may adopt and enforce rules applicable in
the boundaries of the county, municipality, or water district and
in other areas under the jurisdiction of the county, municipality,
(1)  preserve and protect the quality and sanitary
condition of all water, sanitary sewage, and stormwater that may
affect a water supply of the county, municipality, or water
district or the district or the waters of the state;
(2)  prevent waste or unauthorized use of water,
sanitary sewage, or stormwater under the jurisdiction of a county,
municipality, or water district or the district; or
(3)  implement water conservation measures and
(e)  Rules adopted under Subsection (d):
(1)  may not exceed the authority of the county,
municipality, or water district;
(2)  must be consistent with and no more stringent than
(3)  must conform to the terms of the contract; and
(4)  are not applicable within a municipality that is
not a party to the contract or does not consent to the rules
applying within the municipality.
(f)  The district shall publish once a week for two
consecutive weeks in one or more newspapers with general
circulation in the district a notice of the substance of rules
adopted under Subsection (d) and of any penalties for a violation of
(g)  A person may not be charged with an offense under this
section before the fifth day after the date of the second
(h)  A person who violates a rule or order adopted by the
board under this section commits an offense.  An offense under this
section is a Class C misdemeanor.
Sec. 11021.0310.  GENERAL CONTRACT AUTHORITY.  (a)  The
district may enter into contracts with the United States, an agency
of the United States, a municipality, or another public or private
person considered necessary in the exercise of the powers and
(b)  The district may enter into contracts to acquire,
purchase, rent, lease, or operate the water production, water
supply, water filtration or purification, water supply facilities,
or other water or wastewater facilities that are owned or operated
(c)  The district may acquire water appropriation permits
and other necessary permits directly from the appropriate agency of
the state or from owners of permits.
(d)  Contracts that require a payment of money by the
district may be made payable from any general or specific source of
funds as determined by the board.
Sec. 11021.0311.  CONTRACTS WITH MUNICIPALITIES.  (a)  A
municipality, public agency, political subdivision, or any
nonprofit water supply corporation doing business wholly or partly
in the district or a subdistrict may enter into any contract with
the district that is considered appropriate by its governing body.
(b)  The governing body of an entity listed in Subsection (a)
may pledge to the payment of a contract any source of revenue that
may be available to the governing body, including the levy and
collection of ad valorem taxes, if that entity has the authority to
(c)  To the extent a governing body pledges to the payment of
the contract money to be derived from its own water system, its
wastewater system, or its combined system, the payments constitute
an operating expense of that system.
Sec. 11021.0312.  REGULATORY POWER OF MUNICIPALITIES.  This
chapter does not exempt the district or a subdistrict or land
located in the district from the terms and provisions of an
applicable ordinance, code, resolution, platting and zoning
requirement, rule, or regulation of a municipality.
Sec. 11021.0313.  CREATION EXPENSES.  The district is
authorized to pay all costs and expenses incurred in the creation
and organization of the district.
SUBCHAPTER D.  FINANCIAL PROVISIONS
Sec. 11021.0401.  RATES AND CHARGES.  (a)  The district may
establish rates and charges to be assessed against customers of the
district for each service rendered to those customers.  The rates
and charges may be established by classes of customers, by project,
(b)  If revenue bonds or other obligations payable wholly
from revenue are issued, the board shall establish and revise rates
of compensation for water sold and for wastewater or other services
rendered by the district that will be sufficient to pay the expense
of operating and maintaining the facilities of the district, to pay
those bonds and obligations as they mature and the interest as it
accrues, and to maintain the reserve and other funds as provided by
the resolution or order authorizing those bonds or obligations.
Sec. 11021.0402.  CHARGES, FEES, AND RENTALS.  (a)  The
district may adopt, enforce, and collect all necessary charges,
fees, or rentals for providing district facilities or services and
may require a deposit for any service or facilities furnished.  The
district may provide that the deposit bear interest.
(b)  The district may discontinue a facility or service to
prevent an abuse or enforce payment of an unpaid charge, fee, or
(c)  A municipality, a public agency, a political
subdivision, or any other entity that contracts with the district
may establish, charge, and collect fees, rates, charges, rentals,
and other amounts for any service or facility provided under or in
connection with a contract with the district, and to pledge
sufficient amounts to make all payments required under the
Sec. 11021.0403.  DISTRICT AUDIT.  The district shall have
the funds and accounts of the district audited by an independent
auditor.  The district shall maintain a copy of any audit performed
under this section in the official records of the district.
Sec. 11021.0404.  BONDS, NOTES, AND OTHER OBLIGATIONS.  (a)
The district may issue its revenue bonds, notes, revenue
anticipation notes, bond anticipation notes, short-term
obligations, refunding bonds, or other obligations for any of its
purposes without an election and on those terms the board
(b)  Obligations issued by the district may be made payable
from all or part of the revenues of the district derived from any
lawful source, including a contract with a customer or user of the
facilities owned or operated by the district under this chapter or
from the ownership and operation of any waterworks system,
wastewater system, sewer system, solid waste disposal system, or
nonhazardous liquid waste system, or any combination of those
systems.  Additionally, those obligations may be paid from and
secured by liens on and pledges of all or part of any of the revenue,
income, or receipts derived by the district from its ownership,
operation, lease, or sale of the property, buildings, structures,
or facilities, including the proceeds or revenues from contracts
with a person, firm, corporation, municipality, public agency, or
other political subdivision or entity.
Sec. 11021.0405.  BOND PROCEDURES.  (a)  The district's
bonds or other obligations may be issued to mature serially or
otherwise not later than 40 years from their date of issuance, and
provision may be made for the subsequent issuance of additional
parity obligations, or subordinate lien obligations, under terms or
conditions in the resolution authorizing the issuance of the
(b)  The obligations are negotiable instruments within the
meaning of Chapter 8, Business & Commerce Code.
(c)  The district's bonds or other obligations shall be
executed and may be made redeemable before maturity, issued in the
form, denominations, and manner, and under the terms, conditions,
and details, and sold in the manner, at the price, and under the
terms provided by the bond resolution.
(d)  The district's bonds and obligations shall bear
interest at rates provided in the resolution authorizing the
issuance of the bonds or other obligations.
(e)  If provided in the authorizing resolution, the proceeds
from the sale of the bonds or other obligations may be used to pay
interest on those bonds or other obligations during the period of
the acquisition or construction of any facilities to be provided
through the issuance of the bonds or other obligations, to pay
expenses of operation and maintenance of facilities, to create a
reserve fund for the payment of the principal of and interest on the
bonds or other obligations, and to create any other funds.
(f)  The proceeds from the sale of bonds or other obligations
may be placed on time deposit or invested to the extent and in the
manner provided by the authorizing resolution.
(g)  The district may pledge all or any part of its revenue,
income, or receipts from fees, rentals, rates, charges, or contract
proceeds or payments to the payment of the district's bonds or other
obligations, including the payment of principal, interest, and any
other amounts required or permitted in connection with the bonds or
other obligations.  The pledged fees, rentals, rates, charges,
proceeds, or payments shall be established and collected in amounts
that will be at least sufficient, together with any other pledged
resources, to provide for the payment of expenses in connection
with the bonds or other obligations, and for operation,
maintenance, and other expenses in connection with the facilities
for which the bonds or other obligations were issued.
(h)  The district's bonds and other obligations may be
additionally secured by mortgages or deeds of trust on real
property owned or to be acquired by the district, and by chattel
mortgages or liens on any personal property appurtenant to that
real property.  The board may authorize the execution of trust
indentures, mortgages, deeds of trust, or other forms of
encumbrances.  Also, the district may pledge to the payment of the
obligations all or any part of any grant, donation, revenue, or
income received or to be received from the United States government
or any other public or private source.
(i)  The district shall issue its bonds and other obligations
in accordance with Chapters 1201 and 1371, Government Code, as
Sec. 11021.0406.  DEPOSITORY.  (a)  The board, by order or
resolution, shall designate one or more banks inside or outside the
district to serve as depository for the district's money.
(b)  Except as specifically provided by this chapter, the
district's money shall be deposited in the depository bank or
(c)  The district's money may be invested as provided by law
for the investment of county funds and may be invested in accordance
with Chapter 2256, Government Code.
(d)  The district's money shall be secured in the manner
provided by law for investment of public funds.
Sec. 11021.0501.  CREATION OF SUBDISTRICTS.  To provide for
the orderly development of water, wastewater, and other services of
the district in its boundaries and to prevent unnecessary
duplication of facilities, the district may create subdistricts.
Sec. 11021.0502.  PETITION.  (a)  A petition requesting the
creation of a subdistrict in the district may be presented to the
(b)  The petition must be signed by at least 25 persons who
own property in the boundaries of the proposed subdistrict, or the
petition may be submitted by the governing body of a municipality if
accompanied by a resolution of the governing body authorizing the
(1)  the boundaries of the proposed subdistrict as
(2)  the general nature of the improvements to be
acquired, constructed, or otherwise implemented in the
(3)  the necessity and feasibility of those
(4)  the proposed method for funding those
(d)  If a subdistrict is proposed in the corporate limits or
extraterritorial jurisdiction of a municipality, the petition
requesting the creation of the subdistrict must be accompanied by
an official action of the governing body of the municipality in
whose jurisdiction the subdistrict is proposed approving the
creation of the subdistrict.  If the governing body of the
municipality in whose jurisdiction the subdistrict is proposed
objects to the creation of the subdistrict, the subdistrict may not
be created in the incorporated limits or the extraterritorial
jurisdiction of that municipality.
Sec. 11021.0503.  NOTICE AND HEARING.  (a)  The board shall
set a date for a hearing on a petition not earlier than the 30th day
and not later than the 90th day after the date the petition is
(b)  Notice of the hearing shall be given to each
municipality in whose boundaries or extraterritorial jurisdiction
the proposed subdistrict is to be located.
(c)  A copy of the notice of the hearing also shall be posted
in three public places located in the proposed subdistrict and at
the county courthouse not later than the 14th day before the date
(d)  Notice of the hearing shall be published at least one
time in a newspaper of general circulation in the county not later
than the 10th day before the date of the hearing.
Sec. 11021.0504.  APPEARANCE AT AND PROCEDURES FOR HEARING.
An interested person may appear at the hearing for the purpose of
supporting or opposing the creation of the subdistrict.  The
hearing shall be conducted in accordance with the procedures
Sec. 11021.0505.  BOARD ORDER.  (a)  After the public
hearing, the board shall enter an order in the official records of
the district making its findings.
(b)  If the board considers the creation of a subdistrict to
be feasible and practical and finds that the creation of the
proposed subdistrict will be beneficial to the public, will benefit
the residents of and the land included in the proposed subdistrict,
and will contribute to the orderly growth and development of the
regional water and wastewater systems within the district, the
board shall enter an order granting the petition and ordering the
creation of the subdistrict under Section 11021.0506.
(c)  The board shall include its findings in the order and
shall file the order in the official records of the district.
(d)  The order shall define the boundaries of the
subdistrict, but the board is not required to include in the
subdistrict all of the land described in the petition if the board
in its judgment determines that a modification or change in the
subdistrict is necessary or beneficial to the public.
(e)  If the board finds the subdistrict not to be feasible,
practical, or beneficial, the board shall enter an order dismissing
the petition and the proposed subdistrict may not be created.  The
dismissal order does not affect the ability to petition for the
creation of a subdistrict covering the same territory at a later
Sec. 11021.0506.  CONFIRMATION ELECTION REQUIREMENT.  If the
board orders the creation of a subdistrict, the subdistrict shall
be created and in existence from and after the date stated in the
order of the district, without the necessity of a confirmation
election in the boundaries of the subdistrict.  The subdistrict
does not have the authority to levy or collect ad valorem taxes.
Sec. 11021.0507.  STATUS OF SUBDISTRICTS.  (a)  A
subdistrict is a conservation and reclamation district under
Section 59, Article XVI, Texas Constitution, with the powers
(b)  Except as otherwise provided by this chapter, a
subdistrict has the powers specified in this chapter and the same
powers as the district, including the power of eminent domain, and
is subject to the same limitations.
(c)  A subdistrict may not provide services outside its
boundaries, except that it may provide retail water and sewer
services in its customer service area as certificated by a state
Sec. 11021.0508.  SUBDISTRICT GOVERNING BOARD.  (a)  A
subdistrict is governed by a board of supervisors consisting of at
least five members, as determined by the district's board at the
time the creation petition is granted.
(b)  The initial board of supervisors shall be appointed by
the district from among the residents of the subdistrict.
(c)  The district shall make the appointments for terms
specified in the order creating the subdistrict but not to exceed
(d)  The initial supervisors are subject to removal, with or
without cause, by action of the district's board.
(e)  Vacancies on the board of supervisors shall be filled by
the district's board for the unexpired term.
(f)  Except for the initial supervisors and before the
issuance of bonds, notes, or other obligations of the subdistrict,
members of the board of supervisors shall be elected in the manner
provided by Chapter 49, Water Code.  The election shall be held on
the first Saturday in May.  At the initial election of supervisors,
the supervisors' positions shall be divided by the district's board
into two groups as nearly equal as possible for the purpose of
electing initial supervisors for two-year terms and four-year
terms.  Successor supervisors serve four-year terms.
Sec. 11021.0509.  GENERAL POWERS OF SUBDISTRICTS.  (a)  A
subdistrict may exercise the powers provided by this chapter and
shall own and manage the affairs, works, and projects of the
subdistrict subject to any contracts with the district.
(b)  The issuance of bonds by the subdistrict is not
effective until the issuance is approved by official action of the
Sec. 11021.0510.  SUPERVISORS' COMPENSATION.  The members of
the board of supervisors are not entitled to receive compensation
for serving as supervisors but may be reimbursed for actual
reasonable expenses necessarily incurred on behalf of the
subdistrict or in the discharge of their official duties.
Sec. 11021.0511.  STATUS OF SUBDISTRICT.  A subdistrict may
only become a participant of the district.
Sec. 11021.0512.  CONVERSION OF WATER SUPPLY CORPORATION TO
A SUBDISTRICT.  (a)  On the adoption of a conversion resolution by
the board of directors of any nonprofit water supply corporation
doing business wholly or partly in the boundaries of the district,
the board may consider the question of converting the nonprofit
water supply corporation to a subdistrict by following the
procedures provided by this subchapter for creation of
(b)  The resolution required by Subsection (a) shall
include, in addition to the information required by Section
11021.0502, a plan of conversion, including the proposed method for
the transfer of assets and the assumption of debts to the
Sec. 11021.0513.  MEETINGS OF BOARD OF SUPERVISORS.  The
board of supervisors of a subdistrict shall hold regular, special,
or emergency meetings at the times and on the dates the board
Sec. 11021.0514.  SUBDISTRICT OFFICE; MEETING PLACE.  The
board of supervisors of each subdistrict shall designate a meeting
place in the subdistrict as the regular office and meeting place,
but the regular meeting place may be at the regular meeting place of
the district if approved by order of the district.
Sec. 11021.0515.  TAX EXEMPTION.  (a)  All property owned,
operated, leased, or controlled by the district or a subdistrict is
(b)  District or subdistrict bonds, transactions relating to
the bonds, and profits made in the sale of the bonds are exempt from
state taxation or taxation by a municipality, county, special
district, or other political subdivision of the state.
SECTION 2.  (a)  The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
(b)  The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
(c)  The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d)  All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
SECTION 3.  Each entity that enters into a contract with the
Wise Regional Water District before the second anniversary of the
effective date of this Act and qualifies to be a participant or
contract member shall appoint one member to the board of directors
of the Wise Regional Water District before the second anniversary
of the effective date of this Act.
SECTION 4.  (a)  Sections 11021.0303 and 11021.0507(b),
Special District Local Laws Code, as added by Section 1 of this Act,
take effect only if this Act receives a two-thirds vote of all the
(b)  If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 11021, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 11021.0303 to read as follows:
Sec. 11021.0303.  ACQUISITION OF PROPERTY; NO POWER OF
EMINENT DOMAIN.  (a)  The district may acquire by purchase any land,
easements, rights-of-way, or other property or improvements inside
or outside the boundaries of the district, including land above the
probable high water line around any reservoirs in which the
district has an ownership or operational interest, that are needed
or are appropriate to carry out the powers and functions of the
(b)  The district may not exercise the power of eminent
(c)  If this Act does not receive a two-thirds vote of all the
members elected to each house, Section 11021.0507, Special District
Local Laws Code, as added by Section 1 of this Act, is amended by
adding Subsection (b) to read as follows:
(b)  Except as otherwise provided by this chapter, a
subdistrict has the powers specified in this chapter and the same
powers as the district and is subject to the same limitations.  The
subdistrict may not exercise the power of eminent domain.
(d)  This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
SECTION 5.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.