By Moffat H.B. No. 2463 75R8754 T A BILL TO BE ENTITLED 1-1 AN ACT 1-2 amending Chapter 51, Texas Water Code; authorizing certain water 1-3 control and improvement districts to divide into more than two 1-4 districts after an election; authorizing certain water control and 1-5 improvement districts, after an election, to adopt road district 1-6 powers and county development district powers; authorizing lease 1-7 purchase contracts; authorizing the addition of lands by certain 1-8 districts; containing other provisions and declaring an emergency. 1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Section 51.044(e), Water Code as added to read as 1-11 follows: 1-12 (e) A district which, at the time of its conversion under 1-13 Section 51.040 of the Texas Water Code, reserves the powers 1-14 specified in Sections 53.029, 53.030 through 53.035 and 53.037 1-15 through 53.041 of the Texas Water Code may thereafter be divided 1-16 into two or more new districts if it has no outstanding bonded debt 1-17 and is not levying ad valorem taxes. The division procedure 1-18 prescribed by Section 53.030 through 53.035 and 53.037 through 1-19 53.041 of the Texas Water Code may be utilized as often as the 1-20 governing board of each district created in accordance with the 1-21 division procedure deems appropriate. 1-22 SECTION 2. Section 51.044(f), Water Code is added to read as 1-23 follows: 1-24 (f) The district described in Section 51.044(e) of the Texas 2-1 Water Code shall have the following rights, power and authority: 2-2 (1) The governing body of the district shall have the 2-3 right to change the name of the district by adoption of a 2-4 resolution of the district, if the district has no outstanding 2-5 bonded indebtedness; 2-6 (2) If the district has been granted the rights, 2-7 authority, privileges and functions of a road district under 2-8 Article III, Section 52(b)(3) of the Texas Constitution, the 2-9 district shall have authority to acquire, construct and finance 2-10 roads, roadways, streets, entry ways, alleys, easements, 2-11 rights-of-way, bridges, drainage facilities and other facilities 2-12 and interests in real and personal property, inside or outside the 2-13 boundaries of the district or a municipality. In addition, a 2-14 district described in this subsection shall have the right, in 2-15 those areas located outside the boundaries of municipalities, to 2-16 enter into a franchise agreements and grant licenses and 2-17 rights-of-way and enter into other agreements permitting the use of 2-18 its roads, roadways, streets, entry ways, alleys, easements, 2-19 rights-of-way, bridges, drainage facilities and other facilities 2-20 and interests in real and personal property by public utilities, 2-21 including, but not limited to, natural gas, electric, telephone, 2-22 cable television and telecommunications. All revenues realized 2-23 from such agreements may be utilized by the district for any lawful 2-24 purpose." Subject only to agreements the District has previously 2-25 entered into, the governing body of the District may exercise the 2-26 authority granted by this section without the prior approval or 2-27 consent of any other political subdivision of the State. 3-1 (3) If a district, in exercising any of the powers 3-2 conferred by this section, requires the relocation, adjustment, 3-3 raising, lowering, rerouting, or changing the grade of or altering 3-4 the construction of any street, alley, highway, overpass, 3-5 underpass, or road, any railroad track, bridge, or other facilities 3-6 or property, any electric lines, conduits, or other facilities or 3-7 property, any telephone or telegraph lines, conduits, or other 3-8 facilities or property, any gas transmission or distribution pipes, 3-9 pipelines, mains, or other facilities or property, any water, 3-10 sanitary sewer or storm sewer pipes, pipelines, mains, or other 3-11 facilities, or property, any cable television lines, cables, 3-12 conduits, or other facilities or property, or any other pipelines 3-13 and any facilities or properties relating to those pipelines, those 3-14 relocations, adjustments, raising, lowering, rerouting, or changing 3-15 of grade or altering of construction must be accomplished at the 3-16 sole cost and expense of the district, and damages that are 3-17 suffered by the owners of the property or facilities shall be borne 3-18 by the district. 3-19 (4) Upon receipt of a petition of the holders of fee 3-20 simple title to all of the land within a district which complies 3-21 with the requirements of Sections 312.606(1), (4) and (5), Tax 3-22 Code, as amended, the governing body of a district described in 3-23 Section 51.044(e) of the Texas Water Code, as amended, shall post 3-24 notice in the manner required by Section 312.608, Tax Code, as 3-25 amended, conduct a hearing in the manner set forth in 3-26 Section 312.609, Tax Code, as amended and grant or refuse the 3-27 petition in the manner set forth in Section 312.610, Tax Code, as 4-1 amended. Thereafter, the governing body shall have authority to 4-2 call, conduct and canvass a sales and use tax election in the 4-3 manner specified in section 312.614 through 312.617, Tax Code, as 4-4 amended. If a majority of the votes cast in the election favor the 4-5 adoption of the sales and use tax, the district shall have 4-6 authority to impose a hotel occupancy tax in the manner as a county 4-7 development district under Section 352.107, Tax Code, as amended, 4-8 subject to the limitations set forth therein. 4-9 SECTION 3. Section 51.044(g), Water Code is added to read as 4-10 follows: 4-11 (g) A district operating under this chapter shall have the 4-12 following rights, power and authority: 4-13 (1) The district shall have the right to enter into, 4-14 and perform, a lease purchase contract to acquire real property, 4-15 personal property and mixed property. Payments under the lease 4-16 purchase contract may be made from the district's annual revenues 4-17 accruing from its system and properties as determined by the board 4-18 of directors. If an election is conducted in the manner set forth 4-19 in Section 49.108, Water Code, as amended, payments under the lease 4-20 purchase contract may be made from a tax other than operation and 4-21 maintenance taxes, and the tax may be pledged to the repayment of 4-22 the lease purchase contract. 4-23 (2) A district which, in the opinion of a registered 4-24 professional engineer, has fresh water supply capacity and sanitary 4-25 sewer capacity in excess of the amount necessary to provide water 4-26 and sewer services to all property within its boundaries, and which 4-27 has voted bond authorization sufficient to provide water, sewer and 5-1 drainage facilities to all lands within its boundaries and to the 5-2 lands proposed to be added, may add lands adjacent to the 5-3 boundaries of the district and provide all services to the added 5-4 lands which the district provides to properties within the 5-5 boundaries. The procedure for adding the lands shall be the 5-6 procedure set forth in Section 49.301, Texas Water Code, as 5-7 amended. Any such addition of lands shall be valid and 5-8 incontestable so long as the added lands are located outside the 5-9 boundaries of a municipality. If the lands to be added are located 5-10 within the boundaries of a municipality, the district must obtain 5-11 consent for such addition from the municipality. For purposes of 5-12 this subsection, lands which are separated from the boundaries of 5-13 the district by a public road shall be considered to be "adjacent" 5-14 to the boundaries of the district. 5-15 SECTION 4. The importance of this legislation and the 5-16 crowded condition of the calendar in both houses create an 5-17 emergency and an urgent public necessity that the constitutional 5-18 rule requiring bills to be read on three several days in each house 5-19 be suspended, and this rule is hereby suspended, and that this Act 5-20 take effect and be in force from and after its passage and it is so 5-21 enacted.