CHAPTER 66. STORMWATER CONTROL DISTRICTS

WATER CODE

TITLE 4. GENERAL LAW DISTRICTS

CHAPTER 66. STORMWATER CONTROL DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 66.001. DEFINITIONS. In this chapter:

(1) "District" means a stormwater control district.

(2) "Commission" means the Texas Natural Resource Conservation

Commission.

(3) "Executive director" means the executive director of the

Texas Natural Resource Conservation Commission.

(4) "Board" means the board of directors of a district.

(5) "Director" means a member of the board.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 36, eff.

June 19, 1987; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.083,

eff. Aug. 12, 1991.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 66.011. CREATION. A stormwater control district may be

created pursuant to Article XVI, Section 59, of the Texas

Constitution, as provided by this subchapter.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.012. PURPOSE OF DISTRICT. A district may be created to

control stormwater and floodwater and to control and abate

harmful excesses of water for the purpose of preventing area and

downstream flooding in all or part of a watershed.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.013. COMPOSITION OF DISTRICT. A district may be

composed of contiguous or noncontiguous areas within all or part

of the watershed of a river, stream, creek, or bayou.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.014. PETITION. (a) To create a district, a person or

the commissioners courts in the counties in which all or part of

the district is to be located shall file a petition with the

executive director requesting creation of the district.

(b) The petition must be signed by at least 50 persons who

reside within the boundaries of the proposed district or by a

majority of the members of the commissioners court in each county

in which all or part of the district is to be located.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.015. CONTENTS OF PETITION. The petition must include:

(1) a description of the boundaries of the proposed district by

metes and bounds or by lot and block number, if there is a

recorded map or plat and survey of the area;

(2) a statement of the general nature of the work proposed to be

done by the district and the estimated cost of any work to be

done by the district; and

(3) the proposed name of the district.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.016. DISTRICT NAME. (a) A district shall be named the

______________________ (Insert name of county, river, stream,

creek, or bayou in district) Stormwater Control District.

(b) A district may not have the same name as any other district.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.018. NOTICE AND HEARING ON DISTRICT CREATION. If a

petition is filed under Section 66.014, the commission shall give

notice of an application as required by Section 49.011 and may

conduct a hearing if the commission determines that a hearing is

necessary under Section 49.011.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1070, Sec. 44, eff.

Sept. 1, 1997.

Sec. 66.019. COMMISSION FINDINGS AND DECISION. (a) After

considering the petition, the commission shall grant the petition

if it finds that:

(1) the petition conforms to the requirements of Sections 66.014

and 66.015; and

(2) the projects proposed by the district are feasible and

practicable, are necessary, and will be a benefit to land

included in the district.

(b) In making its decision, if the commission finds that a part

of the land to be included in the district will not be benefited

by creation of the district, the commission shall make this

finding, exclude the nonbenefited land from the proposed

district, and redraw the boundaries of the proposed district to

conform to this change.

(c) The commission shall deny the petition if it finds that:

(1) the petition does not conform to the requirements of

Sections 66.014 and 66.015 of this code; or

(2) the projects proposed for the district are not feasible,

practicable, or necessary, or will not benefit any of the land

proposed to be included in the district.

(d) A copy of the commission's order including its findings and

decision shall be mailed to the petitioners as provided by rules

of the commission.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 37, eff.

June 19, 1987; Acts 1997, 75th Leg., ch. 1070, Sec. 45, eff.

Sept. 1, 1997.

Sec. 66.020. APPEAL OF COMMISSION ORDER. The order of the

commission granting or denying a petition may be appealed as

provided by Chapter 2001, Government Code.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),

eff. Sept. 1, 1995.

Sec. 66.021. TEMPORARY DIRECTORS. (a) If the commission grants

the petition, it shall appoint five persons who reside within the

boundaries of the proposed district to serve as temporary

directors until the initial regular directors are elected.

(b) The person who submits the petition for creation of the

district shall submit a list of at least five persons for

appointment as temporary directors, and the commission shall

consider those recommendations when making the appointments.

(c) The temporary directors must have the same qualifications

for office as provided by Section 66.102 of this code for

permanent directors.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

SUBCHAPTER C. ADMINISTRATIVE PROVISIONS

Sec. 66.101. BOARD OF DIRECTORS. A district shall be governed

by a board of directors composed of five members, who are elected

as provided in Chapter 49.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 37, eff.

Sept. 1, 1995.

Sec. 66.102. QUALIFICATION OF DIRECTORS. To serve as a

director, a person must be at least 18 years old, a qualified

voter, and a resident of the district.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.118. RULES. After notice and hearing, the board shall

adopt rules to carry out this chapter, including rules providing

procedures for giving notice and holding hearings before the

board.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 66.201. GENERAL POWERS. The district may:

(1) acquire land to construct facilities for the district;

(2) construct regional stormwater retention and detention pond

facilities to retain stormwater runoff and to prevent area and

downstream flooding in the district;

(3) construct outfall drainage ditches and similar facilities to

control stormwater and floodwater and prevent area and downstream

flooding;

(4) provide for and use the land on which regional stormwater

retention and detention pond facilities are located for park and

recreational areas when the area is not used for holding water;

(5) provide financing for land and facilities and for

construction of facilities from money obtained from sources

provided by this chapter and other laws of this state;

(6) advise, consult, contract, cooperate with, and enter into

agreements with the federal government and its agencies, the

state and its agencies, local governments, and persons; and

(7) apply for, accept, receive, and administer gifts, grants,

loans, and other funds available from any source.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.202. PLAN FOR FACILITIES. (a) Before the district

begins to acquire land and construct facilities, the district

engineer under the supervision of the board shall prepare a

detailed plan for the location of stormwater retention and

detention ponds and outfall drainage ditches or other similar

facilities within the district and for the acquisition of land

and construction of those works and facilities.

(b) In preparing the plan, the district shall attempt to locate

stormwater retention and detention ponds and outfall drainage

ditches and other similar facilities so that they will provide

the minimum amount of runoff in the district while at the same

time providing the maximum amount of protection from area and

downstream flooding.

(c) On completion of the plan by the employees, the board shall

approve the plan as the tentative plan and shall submit the plan

to the commission and to the commissioners court of each county

in which all or part of the district is located.

(d) The commission and each commissioners court shall review the

plan.

(e) Within 60 days after the date on which a plan is submitted

to a commissioners court, the commissioners court shall prepare

its suggestions for change in the plan and shall submit those

suggestions in writing to the commission.

(f) Not later than 10 days after the first day on which the

commission has received written suggestions from all

commissioners courts to which the plan was submitted, the

commission shall give notice and hold a hearing to consider the

plan together with its suggestions and the suggestions for change

from the commissioners courts. Notice shall be given and the

hearing held as provided by Chapter 2001, Government Code.

(g) At the conclusion of the hearing, the commission shall issue

an order stating the changes made in the plan, if any, and

approving the plan.

(h) An order of the commission under this section may not be

appealed.

(i) Amendments and modifications to a plan shall be made in the

manner provided by this section for preparation and approval of

the original plan.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),

eff. Sept. 1, 1995.

Sec. 66.216. TRANSFER OF LAND AND FACILITIES. (a) On

completion of all facilities proposed to be built by the

district, the district shall transfer title to the land and

facilities other than detention ponds to the county or counties

in which the land and facilities are located.

(b) Each county that receives transfer of title to land and

facilities under Subsection (a) of this section shall maintain

those facilities and shall use the land and facilities for the

purpose of stormwater retention and detention ponds and for park

and recreational areas as authorized for the district.

(c) If another regional flood control project is constructed by

the state or a political subdivision of the state, the county may

transfer title of the land and facilities transferred to it under

this section to the state or to the political subdivision to be

used for the purposes for which it was originally acquired or

constructed by the district.

(d) A conveyance of land and facilities to the county under this

section is made free and clear of all indebtedness of the

district.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.217. EFFECT OF TRANSFER. (a) On conveyance of land and

facilities to a county under this subchapter the district is no

longer responsible for the land and facilities or their

maintenance or upkeep, and the control over the land and

facilities is solely in the county to which conveyed.

(b) Conveyance of land and facilities to a county under this

subchapter does not affect the duties and responsibilities of the

district to pay in full the principal of and the premium, if any,

and interest on any outstanding bonds or other indebtedness of

the district and to observe and perform the covenants,

obligations, or conditions provided by the orders or resolutions

authorizing the bonds or other indebtedness.

(c) Notwithstanding the conveyance of land and facilities to a

county under this subchapter, the district is solely responsible

and liable for payment in full of the principal of and the

premium and interest on any bonds or other indebtedness of the

district.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.218. TRANSFER IN PORTIONS. This subchapter may not be

construed as preventing the conveyance of a portion of the land

and facilities proposed to be constructed by a district if the

district's facilities are constructed in stages.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

SUBCHAPTER E. GENERAL FISCAL PROVISIONS

Sec. 66.303. ANNUAL BUDGET. (a) The board shall prepare and

approve an annual budget.

(b) The budget shall contain a complete financial statement,

including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash on hand to the credit of each fund of the

district;

(3) the amount of money received by the district from all

sources during the previous year;

(4) the amount of money available to the district from all

sources during the ensuing year;

(5) the amount of the balances expected at the end of the year

in which the budget is being prepared;

(6) the estimated amount of revenues and balances available to

cover the proposed budget; and

(7) the estimated tax rate that will be required.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.304. AMENDING BUDGET. After the annual budget is

adopted, it may be amended on the board's approval.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.310. ISSUANCE OF BONDS. (a) The board may issue and

sell bonds in the name of the district to acquire land and

construct facilities as provided by this chapter.

(b) Bonds issued by a district and projects and improvements of

the district that are provided through the issuance of bonds are

governed by Chapter 49.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 38, eff.

Sept. 1, 1995.

Sec. 66.311. MANNER OF REPAYMENT OF BONDS. The board may

provide for the payment of the principal of and interest on the

bonds from the levy and collection of property taxes on all

taxable property within the district.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.313. FORM OF BONDS. (a) The district may issue its

bonds in various series or issues.

(b) Bonds may mature serially or otherwise not more than 50

years from their date and shall bear interest at any rate or

rates permitted by the constitution and laws of this state.

(c) The district's bonds and interest coupons, if any, are

investment securities under the terms of Chapter 8 of the

Business & Commerce Code and may be issued registrable as to

principal or as to both principal and interest or may be issued

in book entry form and may be made redeemable before maturity at

the option of the district or may contain a mandatory redemption

provision.

(d) The district's bonds may be issued in the form,

denominations, and manner and under the terms, conditions, and

details and shall be signed and executed as provided by the board

in the resolution or order authorizing their issuance.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.314. PROVISIONS OF BONDS. (a) In the orders or

resolutions authorizing the issuance of bonds, including

refunding bonds, the board may provide for the flow of funds, the

establishment and maintenance of the interest and sinking fund,

the reserve fund, and other funds and may make additional

covenants with respect to the bonds and the pledged fees.

(b) The orders or resolutions of the board authorizing the

issuance of bonds may also prohibit the further issuance of bonds

or other obligations payable from the pledged fees or may reserve

the right to issue additional bonds to be secured by a pledge of

and payable from the fees on a parity with or subordinate to the

pledge in support of the bonds being issued.

(c) The orders or resolutions of the board issuing bonds may

contain other provisions and covenants as the board may

determine.

(d) The board may adopt and have executed any other proceedings

or instruments necessary and convenient in connection with the

issuance of bonds.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.315. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY

COMPTROLLER. (a) Bonds issued by the district and the records

relating to their issuance must be submitted to the attorney

general for examination.

(b) If the attorney general finds that the bonds have been

authorized in accordance with law, he shall approve them, and

they shall be registered by the comptroller of public accounts.

(c) After the approval and registration of bonds, the bonds are

incontestable in any court or other forum for any reason and are

valid and binding obligations in accordance with their terms for

all purposes.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.316. REFUNDING BONDS. Refunding bonds may be issued for

the purposes and in the manner provided by general law including

Chapter 1207, Government Code.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.422, eff.

Sept. 1, 2001.

Sec. 66.317. BONDS AS INVESTMENTS. District bonds are legal and

authorized investments for:

(1) banks;

(2) savings banks;

(3) trust companies;

(4) savings and loan associations;

(5) insurance companies;

(6) fiduciaries;

(7) trustees;

(8) guardians; and

(9) sinking funds of cities, counties, school districts, and

other political subdivisions of the state and other public funds

of the state and its agencies, including the permanent school

fund.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.318. BONDS AS SECURITY FOR DEPOSITS. District bonds are

eligible to secure deposits of public funds of the state and

cities, counties, school districts, and other political

subdivisions of the state. The bonds are lawful and sufficient

security for deposits to the extent of their value when

accompanied by all unmatured coupons.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.319. MANDAMUS BY BONDHOLDERS. In addition to all other

rights and remedies provided by law, if the district defaults in

the payment of principal, interest, or redemption price on its

bonds when due or if it fails to make payments into any fund or

funds created in the orders or resolutions authorizing the

issuance of the bonds or defaults in the observation or

performance of any other covenants, conditions, or obligations

set forth in the orders or resolutions authorizing the issuance

of its bonds, the owners of any of the bonds are entitled to a

writ of mandamus issued by a court of competent jurisdiction

compelling and requiring the district and its officials to

observe and perform the covenants, obligations, or conditions

prescribed in the orders or resolutions authorizing the issuance

of the district's bonds.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.320. APPLICATION OF OTHER LAWS. Bonds of the district

are considered public securities under Chapter 1201, Government

Code.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.422, eff.

Sept. 1, 2001.

Sec. 66.321. TAX STATUS OF BONDS. Since a district created

under this chapter is a public entity performing an essential

public function, bonds issued by the district, any transaction

relating to the bonds, and profits made in the sale of the bonds

are free from taxation by the state or by any city, county,

special district, or other political subdivision of the state.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.322. LEVY OF TAXES. The board may annually levy taxes

in the district to pay the principal of and interest on bonds

issued by the district and the expense of assessing and

collecting taxes.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.324. BOARD AUTHORITY. (a) The board may levy taxes for

the entire year in which the district is created.

(b) The board shall levy taxes on all property within the

boundaries of the district subject to district taxation.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.325. TAX RATE. In setting the tax rate, the board shall

take into consideration the income of the district from sources

other than taxation. On determination of the amount of tax

required to be levied, the board shall make the levy and certify

it to the tax assessor-collector.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.326. TAX APPRAISAL, ASSESSMENT, AND COLLECTION. (a)

The Tax Code governs the appraisal, assessment, and collection of

district taxes.

(b) The board may provide for the appointment of a tax

assessor-collector for the district or may contract for the

assessment and collection of taxes as provided by the Tax Code.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

SUBCHAPTER F. DISSOLUTION

Sec. 66.401. PETITION FOR DISSOLUTION. After a district has

completed all construction of facilities provided in the plan and

conveyed those facilities to the designated counties and after

all bonds and other indebtedness of the district are paid in

full, the district shall submit to the commission a petition for

dissolution accompanied by such evidence as the commission

requires in its rules or by order to show that the plan prepared

and adopted in accordance with Section 66.202 of this chapter has

been carried out and all bonds and other indebtedness have been

paid in full.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.402. ORDER TO DISSOLVE DISTRICT. (a) After considering

the petition and the accompanying evidence, if the commission

finds that the work is completed according to the plan and the

facilities have been conveyed and that all bonds and other

indebtedness have been retired, the commission shall order the

district dissolved.

(b) If the commission finds that the work has not been completed

according to the plan, that all facilities have not been

conveyed, or that all bonds and other indebtedness have not been

retired, the commission shall issue an order that will ensure

that the work is completed by the district, all conveyances are

made, and all debt will be retired, and on compliance with this

order shall issue an order dissolving the district.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 24.007, eff. September 1, 2009.

Sec. 66.403. DISTRIBUTION OF ASSETS. (a) If at the time a

district is dissolved, the district has any surplus funds in any

of its accounts, the board shall transfer those funds to the

county that assumes jurisdiction over the facilities conveyed by

the district, and the county receiving the funds shall use those

funds to maintain the facilities conveyed.

(b) If more than one county assumes jurisdiction over district

facilities, the board shall transfer the funds to each county

based on the proportion of the proceeds of all indebtedness

incurred by the district to acquire the land and construct the

facilities conveyed to that county.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.

Sec. 66.404. EFFECT OF COMMISSION ORDER. On the issuance of the

order of dissolution by the commission, the dissolved district

ceases to exist as a governmental entity, and the board shall

continue in existence only for the purpose of transferring

district funds and disposing of district assets.

Added by Acts 1985, 69th Leg., ch. 734, Sec. 1, eff. Sept. 1,

1985.