Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Lewis of Orange H.B. No. 2236
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation, administration, and financing of utility
1-3 districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 49.057(e), Water Code, is amended to read
1-6 as follows:
1-7 (e) The board shall require an officer, employee, or
1-8 consultant who routinely collects, pays, or handles any funds of
1-9 the district, such as the bookkeeper, financial advisor, or system
1-10 operator, to furnish good and sufficient bond, payable to the
1-11 district, in an amount determined by the board to be sufficient to
1-12 safeguard the district. The board may require a bond from such
1-13 other consultants as the board deems necessary. The bond shall be
1-14 conditioned on the faithful performance of that person's duties and
1-15 on accounting for all funds and property of the district. Such
1-16 bond shall be signed or endorsed by a surety company authorized to
1-17 do business in the state.
1-18 SECTION 2. Section 49.103(e), Water Code, is amended to read
1-19 as follows:
1-20 (e) Section 49.002 notwithstanding, in all areas of conflict
1-21 the provisions of Subsections (a) and (b) shall take precedence
1-22 over all prior statutory enactments.
1-23 SECTION 3. Section 49.103, Water Code, is amended by adding
1-24 Subsection (g) to read as follows:
2-1 (g) Those districts which are required by this subsection to
2-2 convert to four year terms and/or change election dates may extend
2-3 the terms of directors currently in office to the next appropriate
2-4 election date in an even numbered year. Those districts which may
2-5 have non-staggered terms as a result of compliance with prior
2-6 requirements may draw lots to determine which positions shall serve
2-7 the longer terms necessary to convert to four year staggered terms.
2-8 SECTION 4. Section 49.106, Water Code, is amended by adding
2-9 Subsection (d) to read as follows:
2-10 (d) A bond election may be called as a result of an
2-11 agreement to annex additional land into the district.
2-12 SECTION 5. Section 49.181 (h)(4), Water Code, is amended to
2-13 read as follows:
2-14 (h)(4) the district is governed by a board of directors
2-15 appointed in whole or in part by the governor, a state agency, or
2-16 the governing body or chief elected official of a municipality or
2-17 county and does not provide or propose to provide water, sewer,
2-18 drainage, reclamation or flood control services to residential
2-19 retail customers as its principal function.
2-20 SECTION 6. Sec. 49.198(a), Water Code, is amended to read as
2-21 follows:
2-22 (a) A district [that is not collecting taxes] may elect to
2-23 file annual financial reports with the executive director in lieu
2-24 of the district's compliance with Section 49.191 provided:
2-25 (1) the district had no bonds or other long-term (more
2-26 than one year) liabilities outstanding during the fiscal period;
2-27 (2) the district did not have gross receipts from
2-28 operations, loans, taxes, or contributions in excess of $100,000
2-29 during the fiscal period; and
2-30 (3) the district's cash and temporary investments were
3-1 not in excess of $100,000 at any time during the fiscal period.
3-2 SECTION 7. Section 49.218, Water Code, is amended to read as
3-3 follows:
3-4 Sec. 49.218. Acquisition of Property. (a) A district or a
3-5 water supply corporation may acquire land, any interest in land,
3-6 materials, waste grounds, easements, rights-of-way, equipment,
3-7 contract or permit rights or interests, and other property, real or
3-8 personal, considered necessary for the purpose of accomplishing any
3-9 one or more of the district's or water supply corporation's
3-10 purposes provided in this code or in any other law.
3-11 (b) A district or water supply corporation shall have the
3-12 right to acquire property by gift, grant, or purchase, and the
3-13 right to acquire property shall include property considered
3-14 necessary for the construction, improvement, extension,
3-15 enlargement, operation, or maintenance of the plants, works,
3-16 improvements, facilities, equipment, or appliances of a district or
3-17 an water supply corporation.
3-18 (c) A district or water supply corporation may acquire
3-19 either the fee simple title to or an easement on all land, both
3-20 public and private, either inside or outside its boundaries and may
3-21 acquire the title to or an easement on property other than land
3-22 held in fee.
3-23 (d) A district or water supply corporation may also lease
3-24 property from others for its use on such terms and conditions as
3-25 the board of the district or the board of directors of the water
3-26 supply corporation may determine to be advantageous.
3-27 SECTION 8. Section 49.226, Water Code is amended to read as
3-28 follows:
3-29 Sec. 49.226. Sale or Exchange of Surplus Land or Personal
3-30 Property. (a) Any personal property valued at more than $300, or
4-1 a[A]ny land or interest in land[, or personal property] owned by
4-2 the district which is found by the board to be surplus and is not
4-3 needed by the district may be sold under order of the board either
4-4 by public or private sale, or the land, interest in land, or
4-5 personal property may be exchanged for other land, interest in
4-6 land, or personal property needed by the district. Except as
4-7 provided in Subsection (b), land, interest in land, or personal
4-8 property must be exchanged for like fair market value, which value
4-9 may be determined by the district.
4-10 (b) Any property dedicated to or acquired by the district
4-11 without expending district funds may be abandoned or released to
4-12 the original grantor, the grantor's heirs, assigns, executors, or
4-13 successors upon terms and conditions deemed necessary or
4-14 advantageous to the district and without receiving compensation for
4-15 such abandonment or release. District property may also be
4-16 abandoned, released, exchanged, or transferred to another district,
4-17 municipality, county, countywide agency, or authority upon terms
4-18 and conditions deemed necessary or advantageous to the district.
4-19 Narrow strips of property resulting from boundary or surveying
4-20 conflicts or similar causes, or from insubstantial encroachments by
4-21 abutting property owners, may be abandoned, released, exchanged, or
4-22 transferred to such abutting owners upon terms and conditions
4-23 deemed necessary or advantageous to the district. Chapter 272,
4-24 Local Government Code, shall not apply to this subsection.
4-25 (c) Before either a public or private sale of real property
4-26 not required by the district, the district shall give notice of the
4-27 intent to sell by publishing notice once a week for two consecutive
4-28 weeks in one or more newspapers with general circulation in the
4-29 district.
4-30 (d) If the district has outstanding bonds secured by a
5-1 pledge of tax revenues, the proceeds of the sale of property not
5-2 required by the district shall be applied to retire outstanding
5-3 bonds of the district when required by the district's applicable
5-4 bond resolutions.
5-5 (e) If the district does not have any outstanding bonds, the
5-6 proceeds derived from the sale of the personal property or land not
5-7 required by the district may be used for any lawful purpose.
5-8 SECTION 9. Subchapter I, Chapter 49, Water Code is retitled
5-9 to read as follows:
5-10 SUBCHAPTER I. [CONSTRUCTION] CONTRACTS FOR MATERIALS,
5-11 MACHINERY, CONSTRUCTION, ETC.
5-12 SECTION 10. Section 49.273, Water Code, is amended to read
5-13 as follows:
5-14 Sec. 49.273. [CONSTRUCTION] CONTRACT AWARD. (a) The board
5-15 shall contract for the purchase of equipment, materials, machinery,
5-16 and construction, repair or renovation of district facilities in
5-17 accordance with this section. The bidding documents, plans,
5-18 specifications, and other data needed to bid on the project must be
5-19 available at the time of the first advertisement and the
5-20 advertisement shall state the location at which these documents may
5-21 be reviewed.
5-22 (b) A construction contract may cover all the work to be
5-23 provided by the district or the various elements of the work may be
5-24 segregated for the purpose of receiving bids and awarding
5-25 contracts. A contract may provide that the work will be
5-26 constructed in stages over a period of years.
5-27 (c) A construction contract may provide for the payment of a
5-28 total sum that is the completed cost of the work or may be based on
5-29 bids to cover cost of units of the various elements entering into
5-30 the work as estimated and approximately specified by the district's
6-1 engineers, or a contract may be let and awarded in any other form
6-2 or composite of forms and to any responsible person or persons
6-3 that, in the board's judgment, will be most advantageous to the
6-4 district and result in the best and most economical completion of
6-5 the district's proposed plants, improvements, facilities, works,
6-6 equipment, and appliances.
6-7 (d) For [construction] contracts for $25,000 or more, the
6-8 board shall advertise the letting of the contract, including the
6-9 general conditions, time, and place of opening of sealed bids. The
6-10 notice shall be published in one or more newspapers circulated in
6-11 each county in which part of the district is located. If one
6-12 newspaper meets both of these requirements, publication in such
6-13 newspaper is sufficient. If there are more than four counties in
6-14 the district, notice may be published in any newspaper with general
6-15 circulation in the district. The notice shall be published once a
6-16 week for three consecutive weeks before the date that the bids are
6-17 opened, and the first publication shall be not later than the 21st
6-18 day before the date of the opening of the sealed bids.
6-19 (e) For [construction] contracts for $15,000 or more but
6-20 less than $25,000, the board shall solicit written competitive bids
6-21 on uniform written specifications from at least three bidders.
6-22 (f) For [construction] contracts of less than $15,000, the
6-23 board is not required to advertise or seek competitive bids.
6-24 (g) The board may not subdivide work to avoid the
6-25 advertising requirements specified in this section. Repair of
6-26 district facilities by the district's operator is not subject to
6-27 competitive bidding unless the costs of a single repair exceed the
6-28 advertising requirements specified in this section.
6-29 (h) The board may not accept bids that include substituted
6-30 items unless the substituted items were included in the original
7-1 bid proposal and all bidders had the opportunity to bid on the
7-2 substituted items or unless notice is given to all bidders at a
7-3 mandatory pre-bid conference.
7-4 (i) Change orders to contracts may be issued only as a
7-5 result of unanticipated conditions encountered during construction
7-6 or changes in regulatory criteria or to facilitate project
7-7 coordination with other political entities.
7-8 (j) The provisions of this subchapter do not apply to
7-9 contracts for personal or professional services or for a utility
7-10 service operator or to contracts made by a district engaged in the
7-11 distribution and sale of electric energy to the public.
7-12 (k) The provisions of this subchapter do not apply to high
7-13 technology procurements. The provisions of Sections 252.021(a) and
7-14 252.042, Local Government Code, shall apply to high technology
7-15 procurements.
7-16 (l) The provisions of this subchapter do not apply to
7-17 equipment, materials and machinery purchased at an auction open to
7-18 the public.
7-19 SECTION 11. Section 49.301(b), Water Code, is amended to
7-20 read as follows:
7-21 (b) If the district has bonds, notes, or other obligations
7-22 outstanding or bonds payable in whole or in part from taxes that
7-23 have been voted but are unissued, the board shall [may] require the
7-24 petitioner or petitioners to assume their share of the outstanding
7-25 bonds, notes, or other obligations and the voted but unissued tax
7-26 bonds of the district and authorize the board to levy a tax on
7-27 their property in each year while any of the bonds, notes, or other
7-28 obligations payable in whole or in part from taxation are
7-29 outstanding to pay their share of the indebtedness.
7-30 SECTION 12. Section 49.301, Water Code is amended by adding
8-1 Subsection (g) to read as follows:
8-2 (g) The order adding the proposed territory to the district
8-3 need not include all of the land described in the petition if at
8-4 the hearing a modification or change is found necessary or
8-5 desirable by the board.
8-6 SECTION 13. Section 49.302(f), Water Code, is amended to
8-7 read as follows:
8-8 (f) A copy of the order annexing land to the district,
8-9 [signed by a majority of the members of the board] and attested by
8-10 the secretary of the board, shall be filed and recorded in the deed
8-11 records of the county or counties in which the district is located
8-12 if the land is finally annexed to the district.
8-13 SECTION 14. Section 49.455(b)(5), Water Code is amended to
8-14 read as follows:
8-15 (b)(5) the aggregate initial principal amount of all bonds
8-16 of the district payable in whole or in part from taxes (excluding
8-17 refunding bonds and any bonds or portion of bonds payable solely
8-18 from revenues received or expected to be received pursuant to a
8-19 contract with a governmental entity) that have been previously
8-20 issued [and remain outstanding];
8-21 SECTION 15. Subchapter F, Chapter 49, Water Code, is amended
8-22 by adding Section 49.186 to read as follows:
8-23 Sec. 49.186. OBLIGATIONS, LEGAL INVESTMENT; SECURITY FOR
8-24 FUNDS. All bonds, notes, and other obligations issued by a
8-25 district shall be legal and authorized investments for all banks,
8-26 trust companies, building and loan associations, savings and loan
8-27 associations, insurance companies of all kinds and types,
8-28 fiduciaries, and trustees, and for all interest and sinking funds
8-29 and other public funds of the State of Texas, and all agencies,
8-30 subdivisions, and instrumentalities of the state including all
9-1 counties, cities, towns, villages, school districts, and all other
9-2 kinds and types of districts, public agencies, and bodies politic.
9-3 A district's bonds, notes, and other obligations shall be eligible
9-4 and lawful security for all deposits of public funds of the State
9-5 of Texas, and all agencies, subdivisions, and instrumentalities of
9-6 the state including all counties, cities, towns, villages, school
9-7 districts, and all other kinds and types of districts, public
9-8 agencies, and bodies politic, to the extent of the market value of
9-9 the bonds, notes, and other obligations when accompanied by any
9-10 unmatured interest coupons attached to them.
9-11 SECTION 16. REPEALER. The following provisions of the Water
9-12 Code ares repealed:
9-13 Sections 51.409, 53.071, 54.511, and 54.515.
9-14 SECTION 17. Section 54.102, Water Code, is amended to read
9-15 as follows:
9-16 Sec. 54.102. QUALIFICATIONS FOR DIRECTORS. To be qualified
9-17 to serve as a director, a person shall be at least 18 [21] years
9-18 old, a resident citizen of the State of Texas, and either own land
9-19 subject to taxation in the district or be a qualified voter within
9-20 the district.
9-21 SECTION 18. Section 54.802(b), Water Code, is amended to
9-22 read as follows:
9-23 (b) The board shall adopt a proposed plan for improvements
9-24 in the defined area or to serve the designated property in the
9-25 manner provided by Section[s] 49.106 [54.506-54.507] of this code.
9-26 SECTION 19. Section 54.806(a), Water Code, is amended to
9-27 read as follows:
9-28 (a) Before the adopted plans may become effective, they must
9-29 be approved by the voters in the defined area or within the
9-30 boundaries of the designated property. The election shall be
10-1 conducted as provided by Chapter 49, Section 49.106 of this Code
10-2 [this chapter] for an election to authorize the issuance of bonds.
10-3 SECTION 20. Section 49.196, Water Code, is amended by adding
10-4 Subsection (c) to read as follows:
10-5 (c) No conservation and reclamation district or entity
10-6 organized under Article III, Section 52 or Article XVI, Section 59
10-7 of the Texas Constitution shall be subject to the requirements of
10-8 Section 140.006, Local Government Code.
10-9 SECTION 21. Section 42.042(e), Local Government Code, is
10-10 amended to read as follows:
10-11 (e) If the consent to initiate proceedings to create the
10-12 political subdivision is obtained, [the proceedings must be
10-13 initiated within six months after the date of the consent and must
10-14 be finally completed within 18 months after the date of the
10-15 consent. Failure to comply with either time requirement terminates
10-16 the consent.] such consent will be valid until withdrawn by the
10-17 governing body.
10-18 SECTION 22. Subchapter B, Chapter 41, Election Code, is
10-19 amended by adding Section 41.033 to read as follows:
10-20 Sec. 41.033. EARLY CLOSING OF POLLS FOR ELECTIONS INVOLVING
10-21 FEWER THAN FIFTY QUALIFIED VOTERS. In an election involving fewer
10-22 than fifty qualified voters, notwithstanding any provision of law
10-23 to the contrary, the presiding judges present at the polling place
10-24 may determine to close the polls at any time that the number of
10-25 ballots cast equals the number of qualified voters eligible to vote
10-26 in the election.
10-27 SECTION 23. Section 6.003 (b)(1), Civil Practice Remedies
10-28 Code, is amended to read as follows:
10-29 (b)(1) a water improvement, a water control and improvement
10-30 district, a conservation and reclamation district, a water control
11-1 and preservation district organized under state law, or any entity
11-2 organized under Article III, Section 52 or Article XVI, Section 59
11-3 of the Texas Constitution.
11-4 SECTION 24. Section 16.061 (a), Civil Practice Remedies
11-5 Code, is amended to read as follows:
11-6 (a) a right of action of this state or any political
11-7 subdivision thereof, including, but not limited to, a county, an
11-8 incorporated city or town, a navigation district, a municipal
11-9 utility district, a conservation and reclamation district, a port
11-10 authority, an entity acting under Chapter 341, Acts of the 57th
11-11 Legislature, Regular Session, 1961. (Article 1187f, Vernon's Texas
11-12 Civil Statutes), a school district, or any entity organized under
11-13 Article III, Section 52 or Article XVI, Section 59 of the Texas
11-14 Constitution is not barred by any of the following sections:
11-15 16.001-16.004, 16.006, 16.007, 16.021-16.028, 16.030-16.032,
11-16 16.035-16.037, 16.051, 16.062, 16.063, 16.065-16.067, 16.070,
11-17 16.071, 31.006, or 71.021.
11-18 SECTION 25. Section 26.012(8), Property Tax Code, is amended
11-19 to read as follows:
11-20 (8) "Debt Service" means the total amount expended or
11-21 to be expended by a taxing unit from property tax revenues to pay
11-22 principal of and interest on debts, other payments required by
11-23 contract to secure the debts or payments required on debts
11-24 anticipated to be incurred in the following calendar year.
11-25 SECTION 26. Section 26.04(e)(3)(A), Property Tax Code, is
11-26 amended to read as follows:
11-27 (A) the amount of principal and interest that
11-28 will be paid to service the unit's debts in the next year from
11-29 property tax revenue, including payments of lawfully incurred
11-30 contractual obligations providing security for the payment of the
12-1 principal of and interest on bonds, payments required on debts
12-2 anticipated to be incurred in the following calendar year and other
12-3 evidences of indebtedness issued on behalf of the unit by another
12-4 political subdivisions.
12-5 SECTION 27. Section 191.0525(d), Natural Resources Code, is
12-6 amended to read as follows:
12-7 (d) A project for a county, [or] municipality, or other
12-8 political subdivision requires advance project review only if the
12-9 project affects a cumulative area larger than five acres or
12-10 disturbs a cumulative area of more than 5,000 cubic yards,
12-11 whichever measure is triggered first, or if the project is inside a
12-12 designated historic district or recorded archeological site.
12-13 SECTION 28. EMERGENCY. The importance of this legislation
12-14 and the crowded condition of the calendars in both houses create an
12-15 emergency and an imperative public necessity that the
12-16 constitutional rule requiring bills to be read on three several
12-17 days in each house be suspended, and this rule is hereby suspended,
12-18 and that this Act take effect and be in force from and after its
12-19 passage, and it is so enacted.