Texas Water Code

§ 51.150 — CONTRACTS WITH OTHER DISTRICTS OR WATER SUPPLY CORPORATIONS

WA § 51.150Title 4. GENERAL LAW DISTRICTS · Ch. 51. WATER CONTROL AND IMPROVEMENT DISTRICTS · Art. D. POWERS AND DUTIES

Statute text

(a)In this section, "authorized water district" means a district created under Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution.

(b)A district may enter into a contract with an authorized water district or a water supply corporation that authorizes the district to acquire, through the issuance of debt or other means, and convey to the authorized water district or water supply corporation all or part of a water supply, treatment, or distribution system, a sanitary sewage collection or treatment system, or works or improvements necessary for drainage of land in the district. The contract may:

(1)permit the district to rehabilitate, repair, maintain, improve, enlarge, or extend any existing facilities to be conveyed to the authorized water district or water supply corporation; or

(2)require the district to pay impact fees or other fees to the authorized water district or water supply corporation for capacity or service in facilities of the authorized water district or water supply corporation.

(c)The contract entered into under Subsection (b) may authorize the authorized water district or water supply corporation to purchase the water, sewer, or drainage system from the district through periodic payments to the district in amounts that, combined with the net income of the district, are sufficient for the district to pay the principal of and interest on any bonds of the district. The contract may provide that the payments due under this subsection:

(1)are payable from and secured by a pledge of all or part of the revenues of the water, sewer, or drainage system;

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Legislative history

Added by Acts 2005, 79th Leg., Ch. 962 (H.B. 1644), Sec. 1, eff. June 18, 2005.