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.