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.