1-1 By: Culberson (Senate Sponsor - Lindsay) H.B. No. 2258 1-2 (In the Senate - Received from the House April 11, 1997; 1-3 April 14, 1997, read first time and referred to Committee on 1-4 Natural Resources; May 18, 1997, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 10, Nays 0; 1-6 May 18, 1997, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2258 By: Lindsay 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the imposition of taxes or fees in certain water 1-11 districts. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter C, Chapter 53, Water Code, is amended 1-14 by adding Section 53.089 to read as follows: 1-15 Sec. 53.089. APPROVAL OF CERTAIN ACTIONS. (a) This section 1-16 applies only to a political subdivision that is, or is located in 1-17 any part in, a municipality with a population of 1.6 million or 1-18 more or that is located in any part in the extraterritorial 1-19 jurisdiction of the municipality. 1-20 (b) A political subdivision that seeks to institute a 1-21 proceeding having the purpose or the effect of imposing a tax or 1-22 fee on a person, property, or a transaction in any part of a 1-23 freshwater supply district organized and in existence on the 1-24 proposed date of the institution of the proceeding shall, not later 1-25 than the 180th day before the date of the institution of the 1-26 proceeding, inform the board, in writing, of the political 1-27 subdivision's intention. 1-28 (c) The board, on receipt of the notice, shall conduct an 1-29 election on the issue of whether the tax or fee may be imposed in 1-30 the district. The election must be conducted, in accordance with 1-31 Chapter 41, Election Code, not later than the 10th day before the 1-32 date of the institution of the proceeding described by the written 1-33 notice in Subsection (b). 1-34 (d) The ballot proposition for an election under this 1-35 section must be printed to permit voting for or against the 1-36 imposition of the tax or fee by the political subdivision in the 1-37 specified part of the district. All voters in the district may vote 1-38 on the proposition. 1-39 (e) If a majority of voters voting at the election approve 1-40 the proposition, the proceeding described by the written notice in 1-41 Subsection (b) may be instituted at any time before the second 1-42 anniversary after the date of the election. If a majority of 1-43 voters voting at the election disapprove the proposition, the 1-44 political subdivision may not institute a proceeding having the 1-45 purpose or effect of imposing a tax or fee in the district and may 1-46 not propose to institute a proceeding having that purpose or effect 1-47 in the district until the second anniversary after the date of the 1-48 election. 1-49 (f) The provisions of this section also apply to districts 1-50 established or operating under this title. 1-51 (g) In this section, the term "political subdivision" does 1-52 not include a county, county development district, junior college 1-53 district, school district, hospital district, nonprofit water 1-54 supply corporation, municipal management district, emergency 1-55 service district, rural fire prevention district, or district or 1-56 authority that exercises the powers granted by Section 52, Article 1-57 III, or Section 59, Article XVI, Texas Constitution. 1-58 SECTION 2. (a) This Act takes effect September 1, 1997, and 1-59 applies to the institution of a proceeding having the purpose or 1-60 effect of the imposition of taxes and fees by a political 1-61 subdivision on or after the effective date of this Act. The 1-62 imposition of taxes or fees by a political subdivision before the 1-63 effective date of this Act is governed by the law as it existed 1-64 immediately before the effective date of this Act, and that law is 2-1 continued in effect for that purpose. 2-2 (b) This Act applies only to a new tax or fee imposed by a 2-3 political subdivision but does not apply to: 2-4 (1) a tax or fee imposed in a district affected by 2-5 Section 53.089, Water Code, as added by this Act, by a political 2-6 subdivision that levied taxes on the property in the district 2-7 before the effective date of that section; 2-8 (2) a tax or fee imposed in a district by a political 2-9 subdivision that was, at an election held within the district 2-10 affected by Section 53.089, Water Code, as added by this Act, 2-11 authorized to levy taxes on property in the district; 2-12 (3) any change in the amount of an existing tax or fee 2-13 imposed by a political subdivision in a district affected by 2-14 Section 53.089, Water Code, as added by this Act, including utility 2-15 rates imposed by a political subdivision; 2-16 (4) a fee, including utility rates, imposed in a 2-17 district affected by Section 53.089, Water Code, as added by this 2-18 Act, by a political subdivision under a contract between the 2-19 political subdivision and the district; or 2-20 (5) a fee authorized to be charged by a statute or by 2-21 an enabling act of a political subdivision. 2-22 SECTION 3. The importance of this legislation and the 2-23 crowded condition of the calendars in both houses create an 2-24 emergency and an imperative public necessity that the 2-25 constitutional rule requiring bills to be read on three several 2-26 days in each house be suspended, and this rule is hereby suspended. 2-27 * * * * *