75R11068 JJT-F By Moffat H.B. No. 2463 Substitute the following for H.B. No. 2463: By Counts C.S.H.B. No. 2463 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the powers and duties of certain water control and 1-3 improvement districts. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter D, Chapter 51, Water Code, is amended 1-6 by adding Sections 51.191-51.193, 51.196, and 51.197 to read as 1-7 follows: 1-8 Sec. 51.191. DIVISION OF CERTAIN CONVERTED DISTRICTS. 1-9 (a) This section applies only to a district converted under 1-10 Subchapter B on or before the effective date of this section. 1-11 (b) A district that after conversion under Subchapter B 1-12 reserved, under Section 51.044, the powers provided by Sections 1-13 53.029-53.034, 53.040, and 53.041, may divide into two or more new 1-14 districts in the manner provided by those sections. 1-15 (c) The district shall conduct the election on the 1-16 proposition to divide the district in the manner provided by 1-17 Sections 49.101 and 49.102(a)-(h) except that the ballots must be 1-18 printed to permit voting for or against the proposition of dividing 1-19 the district. 1-20 (d) Each district that results from a division of a district 1-21 under this section may divide into two or more districts in the 1-22 same manner. 1-23 Sec. 51.192. POWERS OF CERTAIN CONVERTED DISTRICTS. (a) 1-24 This section applies only to a district that: 2-1 (1) after conversion under Subchapter B reserved, 2-2 under Section 51.044, the powers provided by Sections 2-3 53.029-53.034, 53.040, and 53.041; and 2-4 (2) was converted on or before the effective date of 2-5 this section. 2-6 (b) The governing body of a district that does not have 2-7 bonded indebtedness by resolution may change the district's name. 2-8 (c) A district that has the rights, authority, privileges, 2-9 and functions of a road district created under Article III, Section 2-10 52, Texas Constitution, may: 2-11 (1) acquire, construct, or finance a road, roadway, 2-12 street, entry way, alley, easement, right-of-way, bridge, or 2-13 drainage facility: 2-14 (A) inside or outside the boundaries of the 2-15 district; or 2-16 (B) inside the boundaries of a municipality if 2-17 the governing body of the municipality approves the improvement; 2-18 (2) enter into a franchise agreement; 2-19 (3) grant a license; 2-20 (4) grant a right-of-way; 2-21 (5) enter into an agreement with a gas, electric, 2-22 telephone, telecommunications, cable television, or other public 2-23 utility to permit the utility's use of a district road, roadway, 2-24 street, entry way, alley, easement, right-of-way, bridge, drainage 2-25 facility, or other facility or interest in real or personal 2-26 property; and 2-27 (6) use for any purpose revenue derived from an 3-1 agreement entered under Subdivision (5). 3-2 (d) The governing body of a district may exercise the 3-3 authority provided by this section without the approval or consent 3-4 of another political subdivision, except as provided by: 3-5 (1) Subsection (c)(1)(B); or 3-6 (2) an agreement that provides otherwise. 3-7 (e) The district shall accomplish the alteration at the 3-8 district's sole expense if, in exercising authority provided by 3-9 this section, the district requires the alteration, including 3-10 relocation, adjustment, raising, lowering, rerouting, or changing 3-11 the grade or the construction, of a: 3-12 (1) street, alley, highway, overpass, underpass, road, 3-13 railroad track, or bridge; 3-14 (2) electric line or conduit; 3-15 (3) telephone or telegraph line or conduit; 3-16 (4) gas transmission or distribution pipeline, main, 3-17 or other gas transmission or distribution facility or property; 3-18 (5) water, sanitary sewer, or storm sewer pipe, 3-19 pipeline, main, or other facility or property; or 3-20 (6) cable television line, cable, or conduit. 3-21 (f) The district shall pay damages that the owners of the 3-22 property or facility suffer because of an activity described by 3-23 Subsection (e). 3-24 Sec. 51.193. DEVELOPMENT POWERS OF CERTAIN CONVERTED 3-25 DISTRICTS; SPECIAL TAXES. (a) This section applies only to a 3-26 district that: 3-27 (1) after conversion under Subchapter B reserved, 4-1 under Section 51.044, the powers provided by Sections 4-2 53.029-53.034, 53.040, and 53.041; and 4-3 (2) was converted on or before the effective date of 4-4 this section. 4-5 (b) A person may present to the governing body of a district 4-6 a petition requesting that the district undertake a particular 4-7 development project. The petition must: 4-8 (1) be signed by the holders of fee simple title to 4-9 all of the land in the district; 4-10 (2) state the general nature of the proposed project 4-11 and the cost of the project as estimated by the petitioners; and 4-12 (3) state the necessity and feasibility of the project 4-13 and whether the project will serve the public purpose of attracting 4-14 visitors and tourists to the district. 4-15 (c) Not later than the 60th day after the date the governing 4-16 body receives the petition, the governing body shall set a date, 4-17 time, and place for a hearing on the subject of the petition. The 4-18 notice must be in accordance with Sections 312.607 and 312.608, Tax 4-19 Code. 4-20 (d) At the hearing: 4-21 (1) the governing body shall examine the petition to 4-22 ascertain the petition's sufficiency; and 4-23 (2) any interested person may appear before the 4-24 governing body and present testimony on: 4-25 (A) the sufficiency of the petition; or 4-26 (B) the question of whether the district should 4-27 undertake the project. 5-1 (e) The governing body shall enter an order calling an 5-2 election to be held on the question of whether the district should 5-3 undertake the project if, after the hearing, the body finds that: 5-4 (1) the petition conforms to the requirements of this 5-5 section; 5-6 (2) the project is feasible and necessary; and 5-7 (3) the project would serve the public purpose of 5-8 attracting visitors and tourists to the district. 5-9 (f) The governing body shall deny the petition if the body 5-10 fails to find any of the elements provided by Subsection (d). 5-11 (g) An order calling an election under this section must 5-12 conform to the requirements of Section 312.614, Tax Code. The 5-13 district shall give notice of the election and hold the election in 5-14 accordance with Sections 312.614-312.617, Tax Code. The ballots 5-15 must be printed to permit voting for or against the proposition of 5-16 permitting the district to: 5-17 (1) undertake the proposed project; and 5-18 (2) impose a sales and use tax and a hotel occupancy 5-19 tax. 5-20 (h) If the voters approve the project and taxes under this 5-21 section, the governing body may: 5-22 (1) exercise the powers of a district created under 5-23 Subchapter D, Chapter 312, Tax Code; and 5-24 (2) may impose a hotel occupancy tax as provided by, 5-25 and subject to the limitations of, Section 352.107, Tax Code. 5-26 (i) The district may not pledge a sales and use tax imposed 5-27 under this section to secure the payment of a bond or other 6-1 obligation. 6-2 (j) The district may pledge a hotel occupancy tax imposed 6-3 under this section to secure the payment of a bond or other 6-4 obligation. 6-5 Sec. 51.196. LEASE PURCHASE CONTRACT AND PAYMENTS BY CERTAIN 6-6 DISTRICTS. (a) A district created before the effective date of 6-7 this section may acquire real property, personal property, or mixed 6-8 property by a lease purchase contract. 6-9 (b) The district may make payments on a lease purchase 6-10 contract from the district's annual revenues that accrue from the 6-11 district's system and properties on approval by the governing body. 6-12 (c) The district may make payments on a lease purchase 6-13 contract from tax revenues pledged to the payment of the contract 6-14 if the tax is approved after an election held as provided by 6-15 Section 49.108. 6-16 Sec. 51.197. ANNEXATION BY CERTAIN DISTRICTS. (a) A 6-17 district created before the effective date of this section may 6-18 annex land adjacent to the district and provide services to the 6-19 annexed land as provided by Section 49.301 if the district has: 6-20 (1) in the opinion of a registered professional 6-21 engineer, fresh water supply and sanitary sewer capacity that 6-22 exceeds the amount necessary to provide water and sewer services to 6-23 all property in the district; and 6-24 (2) bonding authority approved by the voters 6-25 sufficient to provide water, sewage, and drainage services to all 6-26 property in the district and to the land proposed for annexation. 6-27 (b) If the annexed property is not in the boundaries of a 7-1 municipality, the annexation of the property is presumed valid and 7-2 incontestable. If the property to be annexed is in the boundaries 7-3 or extraterritorial jurisdiction of a municipality, the district 7-4 must obtain the written consent of the governing body of the 7-5 municipality before the annexation. For purposes of this section, 7-6 property separated from the district by a public road is considered 7-7 adjacent to the district. 7-8 SECTION 2. The importance of this legislation and the 7-9 crowded condition of the calendars in both houses create an 7-10 emergency and an imperative public necessity that the 7-11 constitutional rule requiring bills to be read on three several 7-12 days in each house be suspended, and this rule is hereby suspended, 7-13 and that this Act take effect and be in force from and after its 7-14 passage, and it is so enacted.