Tex. Water Code Section 49.231
Standby Fees


(a)

In this section:

(1)

“Standby fee” means a charge, other than a tax, imposed on undeveloped property for the availability of potable water, sanitary sewer, or drainage facilities and services.

(2)

“Undeveloped property” means a tract, lot, or reserve in the district to which no potable water, sanitary sewer, or drainage connections have been made for which:

(A)

water, sanitary sewer, or drainage facilities and services are available;

(B)

water supply, wastewater treatment plant capacity, or drainage capacity sufficient to serve the property is available; or

(C)

major water supply lines, wastewater collection lines, or drainage facilities with capacity sufficient to serve the property are available.

(b)

A district that proposes to provide or actually provides retail potable water or sewer utility services, or drainage services as the principal function of the district, may, with the approval of the commission, adopt and impose on the owners of undeveloped property in the district a standby fee in addition to taxes levied by the district. A district may not impose a standby fee for debt service purposes on undeveloped property unless the facilities and services available to the property have been financed by the district; however, a district may impose a standby fee for operating and maintaining facilities that it has not financed. The district may impose standby fees in different amounts to fairly reflect the level and type of services and facilities available to serve different property. The intent of the standby fee is to distribute a fair portion of the cost burden for operating and maintaining the facilities and for financing capital costs of the facilities to owners of property who have not constructed improvements but have potable water, sewer, or drainage capacity available. Any revenues collected from the standby fees shall be used to pay operation and maintenance expenses, to pay debt service on the bonds, or both.

(c)

If a district described in Subsection (b) desires to adopt and impose a standby fee, the district shall submit to the commission an application for authority to adopt and impose the standby fee. The application must describe the tracts of undeveloped property in the district and state the amount of the proposed fee.

(d)

The executive director shall examine an application submitted under Subsection (c) and shall investigate the financial condition of the district, including the district’s assets, liabilities, sources of revenue, level of utility service rates, and level of debt service and maintenance tax rates. On the request of the executive director, the district shall submit any information the executive director considers relevant to the examination and investigation. The executive director shall prepare a written report on the application and the district’s financial condition, retain a copy of the report, and send a copy of the report to the commission and the district.

(e)

Notice of an application submitted under Subsection (c) shall be published by the district in a form provided by the commission. The district shall publish notice in a newspaper of general circulation in the county or counties in which the district is located once a week for two consecutive weeks. The district shall also send notice of the application by certified mail, return receipt requested, to each owner of undeveloped property in the district. On the date the application is filed, the district’s tax assessor and collector shall certify to the district the names of the persons owning undeveloped land in the district as reflected by the most recent certified tax roll of the district. Notice of the application must be sent by certified mail, return receipt requested, to each mortgagee of record that has submitted a written request to be informed of any application for standby fees. The written request for notice must include the name and address of the mortgagee, the name of the property owner in the district, and a brief property description. The commission may act on an application without conducting a hearing if a public hearing is not requested by the commission, the executive director, or an affected person in the manner prescribed by commission rule during the 30 days following publication of the notice or receipt of mail containing the notice under this subsection.

(f)

The commission shall consider the application, the report of the executive director, and any other evidence allowed by commission rule. The commission may approve the application only if the commission finds that the fee is necessary to maintain the financial integrity and stability of the district and fairly allocates the costs of district facilities and services among property owners of the district.

(g)

The commission shall issue an order approving or disapproving the application. The commission shall retain a copy of the order and send a copy of the order to the district.

(h)

The commission may approve the adoption and imposition of the standby fee for a period of not more than three years. The imposition of a standby fee may be renewed for additional periods of not more than three years each in the same manner provided in this section for initial approval of the standby fee.

(i)

If approved by the commission, the board by resolution or order may impose an annual standby fee on undeveloped land in the district.

(j)

The board may:

(1)

charge interest, at the rate of one percent a month, on a standby fee not paid in a timely manner in accordance with the resolution or order imposing the standby fee;

(2)

impose a penalty in connection with a standby fee that is not paid in a timely manner in accordance with the resolution or order imposing the standby fee; and

(3)

refuse to provide potable water, sanitary sewer, or drainage service to the property for which the fee was assessed until all delinquent standby fees on the property, interest on those fees, and all penalties imposed in connection with the delinquent standby fees are fully paid.

(k)

A standby fee imposed under this section is a personal obligation of the person owning the undeveloped property on January 1 of the year for which the fee is assessed. A person is not relieved of the obligation on transfer of title to the property. On January 1 of each year, a lien attaches to undeveloped property to secure payment of any standby fee, interest on the fee, and any penalty imposed under this section. The lien has the same priority as a lien for taxes of the district.

(l)

If a standby fee imposed under this section is not paid in a timely manner, a district may file suit to foreclose the lien securing payment of the fee, interest on the fee, and any penalty imposed in connection with the fee or to enforce the personal obligation for the fee, interest on the fee, and any penalty imposed in connection with the fee. In addition to the fee, interest on the fee, and any penalty imposed, the district may recover reasonable costs, including attorney’s fees, incurred by the district in enforcing the lien or obligation not to exceed 20 percent of the delinquent fee, interest on the fee, and any penalty. A suit authorized by this subsection must be filed not later than the fourth anniversary of the date the fee became due. A fee delinquent for more than four years, interest on the fee, and any penalty imposed are considered paid unless a suit is filed before the expiration of the four-year period.

(m)

Chapter 395 (Financing Capital Improvements Required by New Development in Municipalities, Counties, and Certain Other Local Governments), Local Government Code, does not apply to a standby fee imposed under this section.

(n)

For purposes of title insurance policies issued under the authority of Title 11, Insurance Code, standby fees are considered taxes.

(o)

The amount of the penalty authorized by Subsection (j) is six percent of the amount of the standby fee for the first calendar month the standby fee is delinquent, plus an additional one percent of the amount of the fee for each of the subsequent four months, or portion of each of those months, the fee is unpaid, except that if the fee remains unpaid on the first day of the sixth month after the month in which the fee became due, the amount of the penalty is 12 percent of the amount of the standby fee.

(p)

This subsection applies only to the board of a district that has entered into a contract with an attorney for the collection of unpaid standby fees. In addition to the penalty authorized by Subsection (j) and in accordance with the resolution or order imposing a standby fee, the board may provide that a standby fee that is not paid in a timely manner is subject to a penalty to defray costs of collection of the unpaid standby fee. The amount of the additional penalty under this subsection may not exceed 15 percent of the amount of the standby fee, interest on the fee, and any penalty imposed in connection with the fee. A penalty under this subsection is incurred on the date set by the board. The penalty may be imposed only if the district or the attorney with whom the district has contracted notifies the property owner of the penalty and the amount of the penalty at least 30 but not more than 60 days before the date the penalty is incurred. A district that imposes the additional penalty under this subsection may not collect both the additional penalty and the attorney’s fees provided by Subsection (l).
Added by Acts 1995, 74th Leg., ch. 715, Sec. 2, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1070, Sec. 16, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1481, Sec. 35, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.164, eff. September 1, 2005.

Source: Section 49.231 — Standby Fees, https://statutes.­capitol.­texas.­gov/Docs/WA/htm/WA.­49.­htm#49.­231 (accessed Mar. 23, 2024).

49.001
Definitions
49.002
Applicability
49.003
Penalty
49.004
Penalty for Violation of District Rules
49.010
Order or Act Creating District
49.011
Notice Applicable to Creation of a District by the Commission
49.051
Board of Directors
49.052
Disqualification of Directors
49.053
Quorum
49.054
Officers
49.055
Sworn Statement, Bond, and Oath of Office
49.056
General Manager
49.057
Management of District
49.058
Conflicts of Interest
49.059
Tax Assessor and Collector
49.060
Fees of Office
49.061
Seal
49.062
Offices and Meeting Places
49.063
Notice of Meetings
49.064
Meetings
49.065
Records
49.066
Suits
49.067
Contracts
49.068
Contracts with Governmental Agencies
49.069
Employee Benefits
49.070
Workers’ Compensation
49.071
District Name Change
49.072
Limitation on Future Employment
49.101
General
49.102
Confirmation and Director Election
49.103
Terms of Office of Directors
49.104
Alternative Election Procedures
49.105
Vacancies
49.106
Bond Elections
49.107
Operation and Maintenance Tax
49.108
Contract Elections
49.109
Agent During Election Period
49.110
Election Judge
49.111
Exemptions from Use of Accessible Voting Systems
49.112
Cancellation of Election
49.113
Notice for Filing for Place on Ballot
49.151
Expenditures
49.152
Purposes for Borrowing Money
49.153
Revenue Notes
49.154
Bond Anticipation Notes
49.155
Payment of Expenses
49.156
Depository
49.157
Investments
49.158
Fiscal Year
49.181
Authority of Commission over Issuance of District Bonds
49.182
Commission Supervision of Projects and Improvements
49.183
Bond Sales
49.184
Approval of Bonds by Attorney General
49.185
Exemptions
49.186
Authorized Investments
49.191
Duty to Audit
49.192
Form of Audit
49.193
Financial Reports
49.194
Filing of Audits, Affidavits, and Financial Reports
49.195
Review by Executive Director
49.196
Access to and Maintenance of District Records
49.197
Financially Dormant Districts
49.198
Audit Report Exemption
49.199
Policies and Audits of Districts
49.200
Review and Comment on Budget of Certain Districts
49.211
Powers
49.212
Fees and Charges
49.213
Authority to Issue Contracts
49.214
Conflicts of Interest in Contracts
49.215
Service to Areas Outside the District
49.216
Enforcement by Peace Officers
49.217
Operation of Certain Motor Vehicles on or near Public Facilities
49.218
Acquisition of Property
49.219
Acquisition of Existing Facilities
49.220
Right to Use Existing Rights-of-way
49.221
Right to Enter Land
49.222
Eminent Domain
49.223
Costs of Relocation of Property
49.224
Power to Condemn Cemeteries
49.225
Leases
49.226
Sale or Exchange of Real or Personal Property
49.227
Authority to Act Jointly
49.228
Damage to Property
49.229
Grants and Gifts
49.230
Area-wide Wastewater Treatment
49.231
Standby Fees
49.232
Laboratory and Environmental Services
49.233
Electric Generation, Transmission, and Distribution for Certain Districts
49.234
Prohibition of Certain Private On-site Facilities
49.235
District Act or Proceeding Presumed Valid
49.236
Notice of Tax Hearing
49.237
District Consent Requirement
49.238
Irrigation Systems
49.239
Cooperative Flood Control
49.271
Contracts for Construction Work
49.272
Reports Furnished to Prospective Bidders
49.273
Contract Award
49.274
Emergency Approval of District Projects
49.275
Contractor’s Bond
49.276
Payment for Construction Work
49.277
Inspection of and Reports on Construction Work
49.278
Nonapplicability
49.279
Prevailing Wage Rates
49.301
Adding Land by Petition of Landowner
49.302
Adding Land by Petition of Less than All the Landowners
49.303
Excluding Land or Other Property from District
49.304
Hearing to Announce Proposed Exclusions and to Receive Petitions
49.305
Petition
49.306
Grounds for Exclusion
49.307
Hearing and Order Excluding Land
49.308
Suit to Review Exclusion
49.309
Exclusion of Nonirrigated Property
49.310
Authority to Exclude Land
49.311
Consent from Holders of Indebtedness
49.312
Results of Exclusion
49.313
District Facilities on Excluded Property
49.314
Water Allocations
49.315
Adding and Excluding Land Before Confirmation
49.316
Division of District
49.321
Dissolution Authority
49.322
Notice of Hearing
49.323
Investigation
49.324
Order of Dissolution
49.325
Certified Copy of Order
49.326
Appeals
49.327
Assets Escheat to State
49.351
Fire Departments
49.352
Municipal System in Unserved Area
49.353
Municipal Contract for Fire-fighting Services in Certain Counties
49.451
Posting Signs in the District
49.452
Notice to Purchasers
49.453
Notice Form from District
49.454
Notice of Unpaid Standby Fees
49.455
Filing Information
49.456
Bankruptcy of Districts
49.461
Policy and Purpose
49.462
Definitions
49.463
Authorization of Recreational Facilities
49.464
Acquisition of and Payment for Recreational Facilities
49.465
Standards
49.466
Commission Rules
49.501
Definition
49.502
Applicability
49.503
Petition by Municipal Water Supplier to Convert Water Use After Subdivision
49.504
Effect of Municipal Water Supplier’s Failure to File a Petition
49.505
Calculation of Proportionate Water Rights
49.506
Provision or Conversion of Proportionate Water Rights by District
49.507
Contract to Purchase Proportionate Water Rights
49.508
Contract to Use Proportionate Water Rights
49.509
Duty of Rio Grande Regional Water Authority to Calculate Current Market Value
49.510
Accounting for Sale of Water Rights
49.511
Capital Improvements
49.512
Map of Service Area
49.0631
District Information on Water Bill
49.1025
Qualified Voters in Confirmation Election
49.1045
Certification of Election Results in Less Populous Districts
49.1571
Investment Officer
49.1991
Efficiency Review of River Authorities
49.2121
Acceptance of Credit Cards
49.2122
Establishment of Customer Classes
49.2125
Fees and Other Charges of Certain Regional Water Authorities After Annexation
49.2127
Pipeline Fees and Requirements Imposed by Certain Districts
49.2145
Use of Money Received Under Certain Contracts
49.2261
Purchase, Sale, or Other Exchange of Water or Water Rights
49.2291
Donations for Economic Development
49.2731
Procedures for Electronic Bids
49.3075
Exclusion for Failure to Provide Sufficient Services
49.3076
Exclusion for Failure to Provide Sufficient Services
49.3077
Tax Liability of Excluded Land
49.3078
Petition for Exclusion: Additional Duties
49.3181
Definitions
49.3182
Conditions for Exclusion of Urban Property
49.3183
Application for Exclusion
49.3184
Consideration of Application
49.3185
Determination of Proportionate Amount of Indebtedness
49.3186
Deadline for Payment of Amounts Due
49.3187
Notice and Hearing
49.3188
Resolution Excluding Urban Property or Rejecting Application
49.3189
Conversion of Water Rights
49.3225
Order Without Hearing
49.4521
Prescribed Notice to Purchasers
49.4641
Recreational Facilities on Sites Acquired for Water, Sewer, or Drainage Facilities
49.4645
District in Certain Counties: Bonds for Recreational Facilities
49.23601
Automatic Election to Approve Tax Rate for Low Tax Rate Districts
49.23602
Automatic Election to Approve Tax Rate for Certain Developed Districts
49.23603
Petition Election to Reduce Tax Rate for Certain Districts

Accessed:
Mar. 23, 2024

§ 49.231’s source at texas​.gov