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.