By Harris                                             H.B. No. 2189
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the creation, composition, operation, and management of
    1-3  certain conservation and reclamation districts.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter B, Chapter 50, Water Code, is amended
    1-6  by adding Sections 50.0243 and 50.027 to read as follows:
    1-7        Sec. 50.0243.  COMMON ELECTIONS.  (a)  Two or more districts
    1-8  may designate a common election office and common early and regular
    1-9  polling places for the election of the districts' directors if:
   1-10              (1)  the districts are located in the same county;
   1-11              (2)  substantially all of the property in the districts
   1-12  has been or is being developed as part of a single community
   1-13  development plan; and
   1-14              (3)  the districts are served by common water supply
   1-15  and wastewater systems.
   1-16        (b)  A common election office and common early and regular
   1-17  polling places designated under this section must:
   1-18              (1)  be in buildings open to the public;
   1-19              (2)  be in at least one of the districts; and
   1-20              (3)  meet the requirements of the Election Code and
   1-21  other general law applicable to polling places.
   1-22        (c)  Common early and regular polling places designated under
   1-23  this section must be located not farther than five miles from any
   1-24  territory contained in any of the districts.
    2-1        (d)  Districts that designate a common election office and
    2-2  common early and regular polling places under this section may
    2-3  designate a common election officer and common early and regular
    2-4  voting officials for commonly held elections of directors.  The
    2-5  designated officer and officials must be qualified voters residing
    2-6  in at least one of the districts and may be nonelective employees
    2-7  of one or more of the districts.
    2-8        Sec. 50.027.  REMOVAL OF MEMBERS OF GOVERNING BOARDS.  (a)  A
    2-9  governing board of a district may remove a board member by
   2-10  unanimous vote of the other board members if the member has missed
   2-11  one-half or more of the board's regular meetings during the
   2-12  preceding 12 months.  A board must provide written notice of the
   2-13  removal to the removed member.
   2-14        (b)  A board member removed under this section may appeal the
   2-15  removal in writing to the commission not later than the 30th day
   2-16  after receipt of written notice of the removal.  The commission may
   2-17  reinstate the member if the commission finds that the removal was
   2-18  without good cause.  In determining good cause the commission may
   2-19  consider the circumstances, including the member's reasons for
   2-20  absences, times and places of meetings missed, business conducted
   2-21  at meetings missed, and other relevant matters.
   2-22        (c)  The office of a member removed under this section
   2-23  becomes vacant when:
   2-24              (1)  the time for appeal under Subsection (b) has
   2-25  expired and an appeal has not been filed; or
   2-26              (2)  the commission issues an order upholding the
   2-27  removal.
    3-1        SECTION 2.  Subchapter C, Chapter 50, Water Code, is amended
    3-2  by adding Sections 50.065 and 50.066 to read as follows:
    3-3        Sec. 50.065.  SALE OR EXCHANGE OF SURPLUS PROPERTY.  (a)  In
    3-4  this section, "surplus property" means personal property or an
    3-5  interest in land owned by a district that is not needed by the
    3-6  district.
    3-7        (b)  A district may, with board approval:
    3-8              (1)  sell surplus property by public or private sale;
    3-9  or
   3-10              (2)  exchange surplus property for property needed by
   3-11  the district with a comparable fair market value, as determined by
   3-12  the board.
   3-13        (c)  As authorized by the board, a district may, without
   3-14  receiving compensation, abandon surplus property that was acquired
   3-15  by or dedicated to the district at no cost to the district or
   3-16  release surplus property that was acquired by or dedicated to the
   3-17  district at no cost to the district to the person who provided the
   3-18  surplus property to the district, or to the person's successors.
   3-19        (d)  As authorized by the board, a district may transfer
   3-20  surplus property to or exchange surplus property with another
   3-21  district, municipality, county, countywide agency, or authority on
   3-22  terms and under conditions the board considers necessary or
   3-23  advantageous.
   3-24        (e)  A district may, with board approval, transfer, abandon,
   3-25  or release small portions of surplus property that are included in
   3-26  boundary or surveying conflicts, minor encroachments by abutting
   3-27  property owners, or similar areas to the abutting property owner,
    4-1  or exchange those small portions with the abutting property owner,
    4-2  under conditions the board considers necessary or advantageous.
    4-3        (f)  A district must publish advance notice of a private or
    4-4  public sale under Subsection (b) once each week for two consecutive
    4-5  weeks in one or more newspapers with general circulation in the
    4-6  district.
    4-7        (g)  A district shall apply proceeds from a private or public
    4-8  sale under Subsection (b) to outstanding district bonds secured by
    4-9  a pledge of tax revenues if required by the district's applicable
   4-10  bond resolutions.  A district may use proceeds for any purpose if
   4-11  the district has no outstanding bonds to which the district must
   4-12  apply proceeds under this subsection.
   4-13        (h)  Section 272.001, Local Government Code, does not apply
   4-14  to a district's disposition of surplus property under Subsection
   4-15  (c), (d), or (e).
   4-16        Sec. 50.066.  LABORATORY SERVICES.  A district may contract
   4-17  with any person, within or without the boundaries of the district,
   4-18  to provide or receive laboratory services related to environmental,
   4-19  health, or drinking water testing.
   4-20        SECTION 3.  Section 50.107(a), Water Code, is amended to read
   4-21  as follows:
   4-22        (a)  Notwithstanding any other law to the contrary, a
   4-23  district created under Article XVI, Section 59, of the Texas
   4-24  Constitution, the boundaries of which include less than the total
   4-25  area of one county, may not issue bonds that will be paid wholly or
   4-26  partially by taxes levied by the district unless the commission
   4-27  determines that the project to be financed by the bonds is feasible
    5-1  and issues an order approving the bonds.  This section does not
    5-2  apply to refunding bonds or bonds issued to and approved by the
    5-3  Farmers Home Administration, the United States Department of
    5-4  Agriculture, or the Texas Water Development Board.
    5-5        SECTION 4.  Section 51.080, Water Code, is amended to read as
    5-6  follows:
    5-7        Sec. 51.080.  Compensation of Directors.  (a)  A director is
    5-8  entitled to receive fees of office <compensation> of not more than
    5-9  $100 <$50 a day> for each day the director <he> actually spends
   5-10  performing the <his> duties of <as> a director.  The <, but the>
   5-11  fees of office may <shall> not exceed $500 in <be more than $200
   5-12  for> any one month regardless of the number of days spent in
   5-13  service of the district during that month.
   5-14        (b)  A director may receive, with the board's approval,
   5-15  reimbursement of actual expenses reasonably incurred while serving
   5-16  the district.
   5-17        (c)  Before a director may receive compensation for <his>
   5-18  services or reimbursement for travel or other expenses incurred
   5-19  while serving the district, the director must <he shall> file with
   5-20  the secretary a signed <verified> statement showing the number of
   5-21  days actually spent in the service of the district, actual expenses
   5-22  incurred, and a general description of duties performed during each
   5-23  day of service<.  The statement shall be filed on the last day of
   5-24  the month, or as soon after that time as possible>.
   5-25        SECTION 5.  Section 51.131(a), Water Code, is amended to read
   5-26  as follows:
   5-27        (a)  The board may set reasonable penalties for the breach of
    6-1  any regulation of the district, which shall not exceed fines of
    6-2  more than $1,000 <$200> or imprisonment for more than 30 days or
    6-3  both.
    6-4        SECTION 6.  Section 51.360, Water Code, is amended to read as
    6-5  follows:
    6-6        Sec. 51.360.  OPERATION AND MAINTENANCE TAX.  (a)  A district
    6-7  may levy and collect a tax for operation and maintenance purposes,
    6-8  including funds for planning, constructing, acquiring, maintaining,
    6-9  repairing, and operating all necessary land, plants, works
   6-10  <properties>, facilities, <and> improvements, appliances, and
   6-11  equipment of the district and for paying costs of proper services,
   6-12  engineering and legal fees, and organization and administrative
   6-13  expenses.
   6-14        (b)  An operation and <A> maintenance tax may not be levied
   6-15  by a district until it is approved by a majority of the electors
   6-16  voting at an election held for that purpose.
   6-17        (c)  A district may use money from the district's operation
   6-18  and maintenance tax revenue to reimburse a developer of property in
   6-19  the district, as defined by Section 50.026, or the developer's
   6-20  assigns for planning, construction, or acquisition of facilities
   6-21  only after the commission's executive director approves the
   6-22  reimbursement.
   6-23        SECTION 7.  Section 53.070, Water Code, is amended to read as
   6-24  follows:
   6-25        Sec. 53.070.  Supervisor's Compensation.  (a)  A supervisor
   6-26  is entitled to receive fees of office of <for his services> not
   6-27  more than $100 <$50> for each day the supervisor <he> actually
    7-1  spends performing the duties of a supervisor.  The fees of office
    7-2  may not exceed $500 in any one month regardless of the number of
    7-3  days spent in service of the district during that month <engages in
    7-4  the work of the district>.
    7-5        (b)  A supervisor may receive, with the board's approval,
    7-6  reimbursement of actual expenses reasonably incurred while serving
    7-7  the district.
    7-8        (c)  Before a supervisor may receive compensation for <his>
    7-9  services or reimbursement for travel or other expenses incurred
   7-10  while serving the district, the supervisor must file with the
   7-11  secretary <he must submit> a signed statement showing the number of
   7-12  days actually spent in the service of the district, actual expenses
   7-13  incurred, and a general description of duties performed during each
   7-14  day of service <of his services similar to the one required by
   7-15  Section 55.111(b) of this code>.
   7-16        SECTION 8.  Section 53.122(b), Water Code, is amended to read
   7-17  as follows:
   7-18        (b)  The board may set a reasonable penalty for violating any
   7-19  rule authorized by Subsection (a) of this section, within these
   7-20  limits:
   7-21              (1)  a fine of not more than $1,000 <$200>;
   7-22              (2)  confinement in the county jail for not more than
   7-23  30 days; or
   7-24              (3)  both the fine and the jail sentence.
   7-25        SECTION 9.  Section 54.114, Water Code, is amended to read as
   7-26  follows:
   7-27        Sec. 54.114.  Fees of Office.  (a)  A director is <The
    8-1  directors are> entitled to receive <as> fees of office of not more
    8-2  than $100 <$50 a day> for each day the director actually spends
    8-3  performing the duties of a director <of service necessary to
    8-4  discharge their duties>.  The fees of office may <shall> not exceed
    8-5  $500 <the sum of $200> in any one month regardless of the number of
    8-6  days spent in service of the district <of necessary service> during
    8-7  that month.
    8-8        (b)  A director may receive, with the board's approval,
    8-9  reimbursement of actual expenses reasonably incurred while serving
   8-10  the district.
   8-11        (c)  Before a director may receive compensation for services
   8-12  or reimbursement for travel or other expenses incurred while
   8-13  serving the district, the director must file with the secretary a
   8-14  signed statement showing the number of days actually spent in the
   8-15  service of the district, actual expenses incurred, and a general
   8-16  description of duties performed during each day of service <Upon
   8-17  approval by the board, a director may be reimbursed for travel or
   8-18  other expenses incurred on behalf of the district upon presentation
   8-19  of a verified statement>.
   8-20        SECTION 10.  Section 54.209(a), Water Code, is amended to
   8-21  read as follows:
   8-22        (a)  The board may set reasonable penalties for the breach of
   8-23  any rule of the district, which shall not exceed fines of more than
   8-24  $1,000 <$200> or imprisonment for more than 30 days or both.
   8-25        SECTION 11.  Section 54.311, Water Code, is amended to read
   8-26  as follows:
   8-27        Sec. 54.311.  OPERATION AND MAINTENANCE TAX.  (a)  A district
    9-1  may levy and collect a tax for operation and maintenance purposes,
    9-2  including funds for planning, constructing, acquiring, maintaining,
    9-3  repairing, and operating all necessary land, plants, works,
    9-4  facilities, improvements, appliances, and equipment of the district
    9-5  and for paying costs of proper services, engineering, and legal
    9-6  fees, and organization and administrative expenses.
    9-7        (b)  An operation and <A> maintenance tax may not be levied
    9-8  by a district until it is approved by a majority of the electors
    9-9  voting at an election held for that purpose.
   9-10        (c)  A district may use operation and maintenance tax revenue
   9-11  for any purpose if the money is not needed for the purposes for
   9-12  which it was collected.
   9-13        (d)  A district may use money from the district's operation
   9-14  and maintenance tax revenue to reimburse a developer of property in
   9-15  the district, as defined by Section 50.026, or the developer's
   9-16  assigns for planning, construction, or acquisition of facilities
   9-17  only after the commission's executive director approves the
   9-18  reimbursement.
   9-19        SECTION 12.  Section 55.111, Water Code, is amended to read
   9-20  as follows:
   9-21        Sec. 55.111.  Compensation of Directors.  (a)  A director is
   9-22  entitled to receive fees of office of not more than $100 <$50 a
   9-23  day> for each day the director <he> actually spends performing the
   9-24  <his> duties of <as> a director.  The fees of office may not exceed
   9-25  $500 in any one month regardless of the number of days spent in
   9-26  service of the district during that month.
   9-27        (b)  A director may receive, with the board's approval,
   10-1  reimbursement of actual expenses reasonably incurred while serving
   10-2  the district.
   10-3        (c)  Before a director may receive compensation for <his>
   10-4  services or reimbursement for travel or other expenses incurred
   10-5  while serving the district, the director must <, he shall> file
   10-6  with the secretary a signed statement showing <an affidavit
   10-7  stating> the number of days actually spent in the service of the
   10-8  district, actual expenses incurred, and a general description of
   10-9  duties performed during each day of service <.  The affidavit shall
  10-10  be filed on the last Saturday of each month, or as soon after that
  10-11  time as practicable>.
  10-12        SECTION 13.  Section 55.252(a), Water Code, is amended to
  10-13  read as follows:
  10-14        (a)  A person who violates the provisions of this subchapter
  10-15  or rules and regulations of the district upon conviction is
  10-16  punishable by a fine of not more than $1,000 <$100> or by
  10-17  confinement in the county jail for not more than 30 days, or by
  10-18  both.
  10-19        SECTION 14.  Subchapter B, Chapter 56, Water Code, is amended
  10-20  by adding Section 56.033 to read as follows:
  10-21        Sec. 56.033.  ALTERNATE PROCEDURE FOR CREATION.  (a)  The
  10-22  landowners of a defined area of territory not included in a
  10-23  district may file with the commissioners court a petition
  10-24  requesting an election on the creation of a district.  The petition
  10-25  must:
  10-26              (1)  be signed by registered voters residing in the
  10-27  territory equal in number to at least five percent of the number of
   11-1  votes received in the territory to be included by all candidates in
   11-2  the most recent gubernatorial general election; and
   11-3              (2)  describe by metes and bounds the territory to be
   11-4  included in the district.
   11-5        (b)  The commissioners court shall call and hold a hearing to
   11-6  determine if the petition meets the requirements of Subsection (a).
   11-7        (c)  If the commissioners court determines the petition meets
   11-8  the requirements of Subsection (a), the court shall order an
   11-9  election held in the proposed district to determine whether or not
  11-10  the district should be created and whether or not the district
  11-11  should issue bonds and levy taxes to pay for the bonds.
  11-12        (d)  The provisions of this subchapter, other than Section
  11-13  56.019, govern the hearing and election.
  11-14        SECTION 15.  Section 56.067, Water Code, is amended to read
  11-15  as follows:
  11-16        Sec. 56.067.  Director's Compensation.  (a)  A director <The
  11-17  directors> of any district is <are> entitled to receive for the
  11-18  director's <their> services not more than $100 <$50> a day for the
  11-19  time actually engaged in the work of the district.  The
  11-20  commissioners court shall establish the amount of compensation by
  11-21  order.
  11-22        (b)  A director may receive reimbursement of actual expenses
  11-23  reasonably incurred while serving the district.
  11-24        (c)  Before a director's <the directors'> accounts are
  11-25  approved, the director <directors> shall submit to the
  11-26  commissioners court a signed statement <detailed written report,
  11-27  under oath,> showing the time actually spent <in> working for the
   12-1  district and describing the work done.  The commissioners court
   12-2  shall audit the report and allow the amount determined by it.
   12-3        SECTION 16.  Chapter 56, Water Code, is amended by adding
   12-4  Subchapters J and K to read as follows:
   12-5           SUBCHAPTER J.  ALTERNATE PROCEDURE FOR ANNEXATION
   12-6                         BY EXISTING DISTRICT
   12-7        Sec. 56.751.  PETITION FOR ANNEXATION.  The landowners of a
   12-8  defined area of territory not included in a district may file with
   12-9  the secretary of the board a petition requesting an election on the
  12-10  inclusion of the territory in a district.  The petition must:
  12-11              (1)  be signed by registered voters residing in the
  12-12  territory equal in number to at least five percent of the number of
  12-13  votes received in the territory to be included by all candidates in
  12-14  the most recent gubernatorial general election; and
  12-15              (2)  describe by metes and bounds the territory to be
  12-16  included in the district.
  12-17        Sec. 56.752.  HEARING ON DETERMINATION OF PETITION.  (a)  The
  12-18  board shall hear the petition to determine if the petition meets
  12-19  the requirements of Section 56.751.
  12-20        (b)  The board by order shall set the time and place of the
  12-21  hearing on the petition.  The hearing shall be held not less than
  12-22  30 days after the date of the order.
  12-23        Sec. 56.753.  NOTICE OF HEARING.  (a)  The secretary of the
  12-24  board shall issue notice of the time and place of the hearing.  The
  12-25  notice must describe the territory proposed to be annexed.
  12-26        (b)  The secretary shall post copies of the notice in three
  12-27  public places in the district and one copy in a public place in the
   13-1  territory proposed to be annexed.  The notices must be posted for
   13-2  at least 15 days before the day of the hearing.
   13-3        (c)  The notice must be published one time in a newspaper
   13-4  with general circulation in the county.  The notice must be
   13-5  published at least 15 days before the day of the hearing.
   13-6        Sec. 56.754.  ELECTIONS TO APPROVE ANNEXATION OF TERRITORY.
   13-7  (a)  If the board determines the petition meets the requirements of
   13-8  Section 56.751, the board shall order elections to approve the
   13-9  annexation.
  13-10        (b)  Annexation of the territory must be approved by a
  13-11  majority vote of the voters at a separate election held in the
  13-12  district and by a majority vote of the voters at a separate
  13-13  election held in the territory proposed to be added.
  13-14        (c)  If the district has outstanding debts or taxes, the
  13-15  election to approve annexation also determines whether the
  13-16  territory to be added assumes its proportion of the debts or taxes
  13-17  if the territory is added to the district.
  13-18        Sec. 56.755.  NOTICE AND PROCEDURE OF ELECTION.  The notice
  13-19  of the election, the manner and the time of giving the notice, the
  13-20  manner of holding the election, and qualifications of the voters
  13-21  are governed by Subchapter E, Chapter 58.
  13-22        Sec. 56.756.  LIABILITY OF ADDED TERRITORY.  The added
  13-23  territory shall bear its pro rata part of all indebtedness or taxes
  13-24  that may be owed, contracted, or authorized by the district to
  13-25  which it is added.
  13-26               SUBCHAPTER K.  CONSOLIDATION OF DISTRICTS
  13-27        Sec. 56.801.  PETITION.  Consolidation is initiated by a
   14-1  petition requesting an election on the question.  The petition must
   14-2  be signed by registered voters residing in either district proposed
   14-3  to be consolidated equal in number to at least five percent of the
   14-4  number of votes received in the district by all candidates in the
   14-5  most recent gubernatorial general election.  The petition must be
   14-6  presented to the commissioners court.
   14-7        Sec. 56.802.  ELECTION ORDER; NOTICE.  (a)  If the
   14-8  commissioners court determines the petition meets the requirements
   14-9  of Section 56.801, the commissioners court shall:
  14-10              (1)  issue an order for an election to be held on the
  14-11  same day in each district included in the proposed consolidated
  14-12  district; and
  14-13              (2)  give notice of the election.
  14-14        (b)  The ballot in the election shall be printed to permit
  14-15  voting for or against the proposition:  "Consolidation of
  14-16  ________________ (names of districts) into a single drainage
  14-17  district."
  14-18        Sec. 56.803.  CANVASS; RESULT.  (a)  The commissioners court
  14-19  shall canvass the returns of the election.  The commissioners shall
  14-20  publish the results separately for each district.
  14-21        (b)  If the majority of votes cast in each district favor the
  14-22  consolidation, the commissioners court shall declare the districts
  14-23  consolidated.
  14-24        Sec. 56.804.  TITLE TO PROPERTY; ASSUMPTION OF DEBT.  Title
  14-25  to all property of the consolidating districts vests in the
  14-26  consolidated district.  The consolidated district assumes and is
  14-27  liable for the outstanding indebtedness of the consolidating
   15-1  districts.
   15-2        SECTION 17.  Section 57.056, Water Code, is amended to read
   15-3  as follows:
   15-4        Sec. 57.056.  Compensation.  (a)  A <Each> director, whether
   15-5  appointed or elected, is entitled to receive fees of office of <for
   15-6  his services> not more than $100 <$50> a day for each day the
   15-7  director actually spends performing the duties of a director.  The
   15-8  fees of office may not exceed $500 in any one month regardless of
   15-9  the number of days spent in service of the district during that
  15-10  month.
  15-11        (b)  A director may also receive, with the board's approval,
  15-12  reimbursement of actual expenses reasonably incurred while serving
  15-13  the district.
  15-14        (c)  Before a director may receive compensation for services
  15-15  or reimbursement for travel or other expenses incurred while
  15-16  serving the district, the director must file with the secretary a
  15-17  signed statement showing the number of days actually spent in the
  15-18  service of the district, actual expenses incurred, and a general
  15-19  description of duties performed during each day of service <and all
  15-20  his expenses for the time he is actually engaged in work of the
  15-21  district.  The commissioners court shall determine the amount of
  15-22  per diem to which a director is entitled, and the expenses will be
  15-23  paid on rendition of a sworn account approved by the county judge
  15-24  of the county which has jurisdiction>.
  15-25        SECTION 18.  Section 57.063, Water Code, is repealed.
  15-26        SECTION 19.  This Act takes effect September 1, 1995.
  15-27        SECTION 20.  The importance of this legislation and the
   16-1  crowded condition of the calendars in both houses create an
   16-2  emergency and an imperative public necessity that the
   16-3  constitutional rule requiring bills to be read on three several
   16-4  days in each house be suspended, and this rule is hereby suspended.