By:  Ellis                                            S.B. No. 1719

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     requiring an election to authorize the levy of an operations and

 1-2     maintenance tax by certain large conservation and reclamation

 1-3     districts and authorizing withdrawal from certain districts.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 49, Water Code is amended to add Sec.

 1-6     49.109 to read as follows:

 1-7           Sec. 49.109.  OPERATION AND MAINTENANCE TAX ELECTION.  (a)  A

 1-8     district with an area of 10,000 acres or more that provides

 1-9     household water and sewer service shall not levy an operation and

1-10     maintenance tax after July 1, 1997 unless it shall hold an election

1-11     to authorize the levy of an operations and maintenance tax after

1-12     that date.

1-13           Prior to the election to authorize the levy of an operation

1-14     and maintenance tax, the board shall divide the district into

1-15     election units.  The election units shall consist of the following

1-16     voting areas:  (1)  the territorial area of each municipality

1-17     having territory included in the district and its extraterritorial

1-18     jurisdiction; and (2)  the unincorporated territory not included in

1-19     the extraterritorial jurisdiction of any municipality.

1-20           The operation and maintenance tax election shall be conducted

1-21     so that votes are separately tabulated and canvassed and the result

 2-1     is declared in each unit of election in the district as follows:

 2-2                 (1)  the area of each municipality having territory

 2-3     included in the district and its extraterritorial jurisdiction; and

 2-4                 (2)  the area of unincorporated territory not included

 2-5     in the extraterritorial jurisdiction of any municipality.

 2-6           A municipality shall provide the district with a certified

 2-7     copy of a map showing the municipality's extraterritorial and

 2-8     territorial area within the district.  Each commissioners court

 2-9     shall provide the district with a map of the unincorporated

2-10     territory within the district not located in the extraterritorial

2-11     jurisdiction of a municipality.

2-12           The board shall declare the results of the election

2-13     separately by each election unit.  In each election unit in which a

2-14     majority of the votes received favor the levy of an operations and

2-15     maintenance tax, the district is authorized to levy an operations

2-16     and maintenance tax.  In each election unit in which a majority of

2-17     the votes received do not favor the levy of an operations and

2-18     maintenance tax, the district shall not be authorized to levy an

2-19     operations and maintenance tax.

2-20           An election to authorize an operation and maintenance tax

2-21     shall not be called more frequently than every twelve months.

2-22           SECTION 2.  Chapter 49, Water Code is amended to add Sec.

2-23     49.110 to read as follows:

2-24           Sec. 49.110.  WITHDRAWAL FROM DISTRICT.  (a)  This section

2-25     applies to a district with an area of 10,000 acres or more that

 3-1     provides household water and sewer services.  The district shall be

 3-2     deemed to consist of the following election units:

 3-3                 (1)  the territorial and extraterritorial area of each

 3-4     municipality within the district; and

 3-5                 (2)  the unincorporated area of a county not within the

 3-6     extraterritorial jurisdiction of a city.

 3-7           The governing body of an election unit may order an election

 3-8     to withdraw the unit from the district.  The governing body of an

 3-9     area of unincorporated territory not within the extraterritorial

3-10     jurisdiction of a municipality is the commissioners court of the

3-11     county in which such area is located.  The governing body of an

3-12     election unit that receives a valid petition under this section

3-13     shall order an election on the proposition of the withdrawal of the

3-14     election unit from the district.

3-15           (b)  In addition to the requirements of Section 277.002,

3-16     Election Code to be valid a petition must:

3-17                 (1)  be signed by a number of qualified voters of the

3-18     election unit equal to five percent of the number of qualified

3-19     voters or 1,000, whichever number is the smaller;

3-20                 (2)  be signed in ink or indelible pencil by the

3-21     voters; and

3-22                 (3)  have affixed or printed on each of the petition

3-23     sheets an affidavit that is executed before a notary public by the

3-24     person who circulated the sheets and that is in the following form

3-25     and substance.

 4-1                 "I, __________________, affirm that I personally

 4-2     witnessed each signer affix his or her signature to this page of

 4-3     this petition for the dissolution of (name of district) in the

 4-4     (election unit).  I affirm to the best of my knowledge and belief

 4-5     that each signature is the genuine signature of the person whose

 4-6     name is signed and that the date entered next to each signature is

 4-7     the date the signature was affixed to this page.

 4-8     Each petition sheet should be filed at the election unit at the

 4-9     same time in a single filing.

4-10           (c)  The clerk of the governing body of the election unit

4-11     shall examine the petition and file within sixty (60) days of the

4-12     date on which the petition is received and file with such body a

4-13     report stating whether the petition meets the requirements of this

4-14     Section.  The governing body, upon the receipt of the report, shall

4-15     within twenty (20) days determine if the petition is valid.  The

4-16     governing body shall order the election on the next uniform

4-17     election date that is more than sixty (60) days following the date

4-18     the governing body determines a petition to be valid.

4-19           (d)  The governing body shall give notice of the election to

4-20     the board of the district and the commission.  At the election the

4-21     ballot shall be printed to provide for voting for or against the

4-22     proposition.

4-23           "Shall the (name of election unit) (including its

4-24     extraterritorial jurisdiction, if applicable) continue to be

4-25     included in (name of district)."

 5-1           If a majority of the votes received in an election favor the

 5-2     proposition, the district continues in the unit of election.

 5-3           If less than a majority of the votes received on the measure

 5-4     in the election favor the proposition, the district ceases to be

 5-5     included in the election unit on the day after the date of the

 5-6     canvass of the election.  Title to all district real estate in the

 5-7     election unit, including improvements made by the district, vests

 5-8     in the election unit, if the election unit claims the real estate

 5-9     and improvements within thirty (30) days after the effective date

5-10     of the election.

5-11           (e)  If the real estate and improvements are within thirty

5-12     (30) days after the effective date of the election determined by

5-13     the district to be necessary for the continuation of household

5-14     water and sewer service to the remaining election units, the

5-15     district may retain use of the real estate and improvements for not

5-16     longer than fifteen (15) years.  If the district retains the use,

5-17     the district is responsible for all operations and maintenance

5-18     costs of the facility.

5-19           (f)  Until the total amount of ad valorem taxes from a

5-20     district's levy of taxes collected from property located in an

5-21     election unit after the effective date of withdrawal equals the

5-22     outstanding financial obligations of the election unit, an ad

5-23     valorem tax shall continue to be collected by the district.  The

5-24     district shall have no authority to levy taxes in the withdrawn

5-25     election unit other than in the amount necessary to pay, each year,

 6-1     the election unit's apportioned share of the district's obligations

 6-2     on the date of withdrawal.

 6-3           (g)  The total financial obligations of the withdrawn

 6-4     election unit to the district is an amount equal to:

 6-5                 (1)  The election unit's apportioned share of the

 6-6     district's outstanding obligations; and

 6-7                 (2)  Any special obligations of the district that

 6-8     relate specifically to the election unit.

 6-9           (h)  The district's outstanding obligations is the sum of:

6-10                 (1)  The obligations of the district as of the date of

6-11     the election as expressed in the budget of or in written contracts

6-12     of the district;

6-13                 (2)  The payments due or to become due in a subsequent

6-14     year or other similar obligations incurred in connection with the

6-15     issuance of notes, bonds or other obligations for debt issued by

6-16     the authority; and

6-17                 (3)  The amount necessary for the full and timely

6-18     payment of the obligations of the district to avoid a default or

6-19     impairment of those obligations.

6-20           (i)  The apportioned share of the election unit's obligations

6-21     or assets is the amount of the total obligations of the district

6-22     times a fraction, the numerator of which is the total value of

6-23     taxable property in the election unit and the denominator of which

6-24     is the total value of taxable property in the district.  The value

6-25     of taxable property shall be determined from the most recent

 7-1     certified tax roll from the central appraisal district for the

 7-2     territory in which the taxable property is located for the tax year

 7-3     in which the election unit withdraws from the district under this

 7-4     section.

 7-5           In addition to the apportioned share of the total district

 7-6     obligations, the withdrawn election unit shall be obligated to pay

 7-7     the district the actual cost incurred for any capital improvements

 7-8     transferred to the election unit pursuant to subparagraph (d) of

 7-9     this section less the election unit's share of the total amount of

7-10     the unencumbered assets of the district including cash deposits,

7-11     certificates of deposit and other negotiable securities.  The

7-12     election unit's share of the district assets shall be determined in

7-13     accordance with the formula in subparagraph (i) above.

7-14           SECTION 3.  The importance of this legislation and the

7-15     crowded condition of the calendars in both houses create an

7-16     emergency and an imperative public necessity that the

7-17     constitutional rule requiring bills to be read on three several

7-18     days in each house be suspended, and this rule is hereby suspended.