AN ACT
1-1 relating to the administration, management, operation, and
1-2 authority of water districts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 36.014, Water Code, is amended to read as
1-5 follows:
1-6 Sec. 36.014. NOTICE AND HEARING ON DISTRICT CREATION.
1-7 (a) If a petition is filed under Section 36.013, the commission
1-8 shall give notice of an application as required by Section
1-9 49.011(a) and may conduct a hearing on the application if the
1-10 commission determines that a hearing is necessary under Section
1-11 49.011 [The notice of hearing on a petition must include a
1-12 statement of the nature and purpose of the proposed district and
1-13 the date, time, and place of hearing].
1-14 (b) [The notice must be posted on the bulletin board used
1-15 for posting legal notices in each county in which all or part of
1-16 the proposed district is to be located.]
1-17 [(c) Notice of the hearing shall be published in a newspaper
1-18 with general circulation in the county or counties in which the
1-19 proposed district is to be located. Notice must be published not
1-20 later than the 30th day before the date of the hearing.]
1-21 [(d)] If the petition contains a request to create a
1-22 management area in all or part of the proposed district, the notice
1-23 must also be given in accordance with the requirements in Section
2-1 35.006 for the designation of management areas.
2-2 SECTION 2. Subchapter B, Chapter 49, Water Code, is amended
2-3 by adding Section 49.011 to read as follows:
2-4 Sec. 49.011. NOTICE APPLICABLE TO CREATION OF A DISTRICT BY
2-5 THE COMMISSION. (a) On receipt by the commission of all required
2-6 documentation associated with an application for creation of a
2-7 district by the commission under Chapter 36, 50, 51, 54, 55, 58,
2-8 65, or 66, the commission shall issue a notice indicating that the
2-9 application is administratively complete.
2-10 (b) The commission by rule shall establish a procedure for
2-11 public notice and hearing of applications. The rules must require
2-12 an applicant to publish the notice issued by the commission under
2-13 Subsection (a) once a week for two consecutive weeks in a newspaper
2-14 regularly published or circulated in the county where the district
2-15 is proposed to be located not later than the 30th day before the
2-16 date on which the commission may act on the application.
2-17 (c) The commission may act on an application without holding
2-18 a public hearing if a public hearing is not requested by the
2-19 commission, the executive director, or an affected person in the
2-20 manner prescribed by commission rule during the 30 days following
2-21 the final publication of notice under Subsection (b).
2-22 (d) If the commission determines that a public hearing is
2-23 necessary, the commission shall advise all parties of the time and
2-24 place of the hearing. The commission is not required to provide
2-25 public notice of a hearing under this section.
3-1 SECTION 3. Subsection (e), Section 49.057, Water Code, is
3-2 amended to read as follows:
3-3 (e) The board shall require an officer, employee, or
3-4 consultant, including a bookkeeper, financial advisor, or system
3-5 operator, who routinely collects, pays, or handles any funds of the
3-6 district to furnish good and sufficient bond, payable to the
3-7 district, in an amount determined by the board to be sufficient to
3-8 safeguard the district. The board may require a consultant who
3-9 does not routinely collect, pay, or handle funds of the district to
3-10 furnish a bond. The bond shall be conditioned on the faithful
3-11 performance of that person's duties and on accounting for all funds
3-12 and property of the district. Such bond shall be signed or
3-13 endorsed by a surety company authorized to do business in the
3-14 state.
3-15 SECTION 4. Section 49.103, Water Code, is amended by
3-16 amending Subsections (e) and (f) and adding Subsection (g) to read
3-17 as follows:
3-18 (e) Section 49.002 notwithstanding, in all areas of conflict
3-19 the provisions of Subsections (a) and [Subsection] (b) shall take
3-20 precedence over all prior statutory enactments.
3-21 (f) This section does not apply to:
3-22 (1) any special law district or authority that is not
3-23 required by the law creating the district or authority to elect its
3-24 directors by the public; or
3-25 (2) a special utility district operating under Chapter
4-1 65.
4-2 (g) A district may, if required under this section to change
4-3 the terms of office of directors to four-year terms or to change
4-4 the date on which the district holds a director election, extend
4-5 the terms of office of directors serving the district on the
4-6 effective date of H.B. No. 2236, Acts of the 75th Legislature,
4-7 Regular Session, 1997, to continue the terms until the next
4-8 appropriate election date in an even-numbered year. A district
4-9 that is required under this section to change the terms of office
4-10 of directors to staggered terms may require directors of the
4-11 district to draw lots to achieve staggered terms.
4-12 SECTION 5. Section 49.106, Water Code, is amended by adding
4-13 Subsection (d) to read as follows:
4-14 (d) A bond election may be called as a result of an
4-15 agreement to annex additional territory into the district.
4-16 SECTION 6. Section 49.108, Water Code, is amended by
4-17 amending Subsection (b) and adding Subsection (e) to read as
4-18 follows:
4-19 (b) A district may make payments under a contract from taxes
4-20 other than operation and maintenance taxes after the provisions of
4-21 the contract have been approved by a majority of the qualified
4-22 voters [electors] voting at an election held for that purpose. A
4-23 contract approved by the qualified voters of a district may contain
4-24 a provision stating that the contract may be modified or amended by
4-25 the board without voter approval.
5-1 (e) A district that is required under Section 49.181 to
5-2 obtain approval by the commission of the district's issuance of
5-3 bonds must obtain approval by the executive director before the
5-4 district enters into an obligation under this section to collect
5-5 tax for debt that exceeds three years. This subsection does not
5-6 apply to contract taxes that are levied to pay for a district's
5-7 share of bonds that have been issued by another district and
5-8 approved by the commission.
5-9 SECTION 7. Section 49.153, Water Code, is amended by
5-10 amending Subsection (c) and adding Subsection (e) to read as
5-11 follows:
5-12 (c) Except as provided by Subsection (e), a [A] district may
5-13 not execute a note for a term longer than three years unless the
5-14 commission issues an order approving the note.
5-15 (e) Subsection (c) does not apply to:
5-16 (1) a note issued to and approved by the:
5-17 (A) Farmers Home Administration;
5-18 (B) United States Department of Agriculture; or
5-19 (C) Texas Water Development Board; or
5-20 (2) a district described by Section 49.181(h).
5-21 SECTION 8. Subsection (h), Section 49.181, Water Code, is
5-22 amended to read as follows:
5-23 (h) This section does not apply to a district if:
5-24 (1) the district's boundaries include one entire
5-25 county;
6-1 (2) the district was created by a special Act of the
6-2 legislature and:
6-3 (A) the district is located entirely within one
6-4 county;
6-5 (B) entirely within one or more home-rule
6-6 municipalities;
6-7 (C) the total taxable value of the real property
6-8 and improvements to the real property zoned by one or more
6-9 home-rule municipalities for residential purposes and located
6-10 within the district does not exceed 25 percent of the total taxable
6-11 value of all taxable property in the district, as shown by the most
6-12 recent certified appraisal tax roll prepared by the appraisal
6-13 district for the county; and
6-14 (D) the district was not required by law to
6-15 obtain commission approval of its bonds before the effective date
6-16 of this section;
6-17 (3) the district is a special water authority; or
6-18 (4) the district is governed by a board of directors
6-19 appointed in whole or in part by the governor, a state agency, or
6-20 the governing body or chief elected official of a municipality or
6-21 county and does not provide, or propose to provide, water, [and]
6-22 sewer, drainage, reclamation, or flood control services to
6-23 residential retail or commercial customers as its principal
6-24 function.
6-25 SECTION 9. Subchapter F, Chapter 49, Water Code, is amended
7-1 by adding Section 49.186 to read as follows:
7-2 Sec. 49.186. AUTHORIZED INVESTMENTS; SECURITY FOR FUNDS.
7-3 (a) All bonds, notes, and other obligations issued by a district
7-4 shall be legal and authorized investments for all banks, trust
7-5 companies, building and loan associations, savings and loan
7-6 associations, insurance companies of all kinds and types,
7-7 fiduciaries, and trustees, and for all interest and sinking funds
7-8 and other public funds of the state, and all agencies,
7-9 subdivisions, and instrumentalities of the state, including all
7-10 counties, cities, towns, villages, school districts, and all other
7-11 kinds and types of districts, public agencies, and bodies politic.
7-12 (b) A district's bonds, notes, and other obligations are
7-13 eligible and lawful security for all deposits of public funds of
7-14 the state, and all agencies, subdivisions, and instrumentalities of
7-15 the state, including all counties, cities, towns, villages, school
7-16 districts, and all other kinds and types of districts, public
7-17 agencies, and bodies politic, to the extent of the market value of
7-18 the bonds, notes, and other obligations when accompanied by any
7-19 unmatured interest coupons attached to them.
7-20 SECTION 10. Subsection (a), Section 49.198, Water Code, is
7-21 amended to read as follows:
7-22 (a) A district [that is not collecting taxes] may elect to
7-23 file annual financial reports with the executive director in lieu
7-24 of the district's compliance with Section 49.191 provided:
7-25 (1) the district had no bonds or other long-term (more
8-1 than one year) liabilities outstanding during the fiscal period;
8-2 (2) the district did not have gross receipts from
8-3 operations, loans, taxes, or contributions in excess of $100,000
8-4 during the fiscal period; and
8-5 (3) the district's cash and temporary investments were
8-6 not in excess of $100,000 at any time during the fiscal period.
8-7 SECTION 11. Section 49.211, Water Code, is amended by adding
8-8 Subsections (c) and (d) to read as follows:
8-9 (c) A district that is authorized by law to engage in
8-10 drainage or flood control activities may adopt:
8-11 (1) a master drainage plan, including rules relating
8-12 to the plan and design criteria for drainage channels, facilities,
8-13 and flood control improvements;
8-14 (2) rules for construction activity to be conducted
8-15 within the district that:
8-16 (A) reasonably relate to providing adequate
8-17 drainage or flood control; and
8-18 (B) use generally accepted engineering criteria;
8-19 and
8-20 (3) reasonable procedures to enforce rules adopted by
8-21 the district under this subsection.
8-22 (d) If a district adopts a master drainage plan under
8-23 Subsection (c)(1), the district may adopt rules relating to review
8-24 and approval of proposed drainage plans submitted by property
8-25 developers. A district that reviews a proposed drainage plan under
9-1 rules adopted under this subsection shall, if the district fails to
9-2 approve the proposed plan, prepare a written report that identifies
9-3 the areas that are not in compliance with the district's master
9-4 drainage plan or rules adopted under Subsection (c).
9-5 SECTION 12. Subsection (d), Section 49.212, Water Code, is
9-6 amended to read as follows:
9-7 (d) Notwithstanding any provision of law to the contrary, a
9-8 district that charges a fee that is an impact fee as described in
9-9 Section 395.001(4), Local Government Code, must comply with Chapter
9-10 395, Local Government Code. A charge or fee by a district for
9-11 construction, installation, or inspection of a tap or connection to
9-12 district water, sanitary sewer, or drainage facilities, including
9-13 all necessary service lines and meters, or for wholesale facilities
9-14 that serve such water, sanitary sewer, or drainage facilities that
9-15 (i) does not exceed three times the actual and reasonable costs to
9-16 the district for such tap or connection [work] or (ii) if made to a
9-17 nontaxable entity for retail or wholesale service, does not exceed
9-18 the actual costs to the district for such work and for all
9-19 facilities that are necessary to provide district services to such
9-20 entity and that are financed or are to be financed in whole or in
9-21 part by tax-supported or revenue bonds of the district, shall not
9-22 be deemed [or considered] to be an impact fee under Chapter 395,
9-23 Local Government Code.
9-24 SECTION 13. Subsection (a), Section 49.218, Water Code, is
9-25 amended to read as follows:
10-1 (a) A district or a water supply corporation may acquire
10-2 land, an interest in land, materials, waste grounds, easements,
10-3 rights-of-way, equipment, contract or permit rights or interests,
10-4 and other property, real or personal, considered necessary for the
10-5 purpose of accomplishing any one or more of the district's or water
10-6 supply corporation's purposes provided in this code or in any other
10-7 law.
10-8 SECTION 14. Subsections (a) and (b), Section 49.226, Water
10-9 Code, are amended to read as follows:
10-10 (a) Any personal property valued at more than $300 or any
10-11 land or[,] interest in land[, or personal property] owned by the
10-12 district which is found by the board to be surplus and is not
10-13 needed by the district may be sold under order of the board either
10-14 by public or private sale, or the land, interest in land, or
10-15 personal property may be exchanged for other land, interest in
10-16 land, or personal property needed by the district. Except as
10-17 provided in Subsection (b), land, interest in land, or personal
10-18 property must be exchanged for like fair market value, which value
10-19 may be determined by the district.
10-20 (b) Any property dedicated to or acquired by the district
10-21 without expending district funds may be abandoned or released to
10-22 the original grantor, the grantor's heirs, assigns, executors, or
10-23 successors upon terms and conditions deemed necessary or
10-24 advantageous to the district and without receiving compensation for
10-25 such abandonment or release. District property may also be
11-1 abandoned, released, exchanged, or transferred to another district,
11-2 municipality, county, countywide agency, or authority upon terms
11-3 and conditions deemed necessary or advantageous to the district.
11-4 Narrow strips of property resulting from boundary or surveying
11-5 conflicts or similar causes, or from insubstantial encroachments by
11-6 abutting property owners, or property of larger configuration that
11-7 has been subject to encroachments by abutting property owners for
11-8 more than 25 years may be abandoned, released, exchanged, or
11-9 transferred to such abutting owners upon terms and conditions
11-10 deemed necessary or advantageous to the district. Chapter 272,
11-11 Local Government Code, shall not apply to this subsection.
11-12 SECTION 15. Subchapter H, Chapter 49, Water Code, is amended
11-13 by adding Section 49.2261 to read as follows:
11-14 Sec. 49.2261. PURCHASE, SALE, OR OTHER EXCHANGE OF WATER OR
11-15 WATER RIGHTS. Notwithstanding any other law, the district may:
11-16 (1) purchase, acquire, sell, transfer, lease, or
11-17 otherwise exchange water or water rights under an agreement between
11-18 the district and a person or entity that contains terms that are
11-19 considered advantageous to the district; and
11-20 (2) employ agents, consultants, brokers,
11-21 professionals, or other persons that the board determines are
11-22 necessary or appropriate to conduct a transaction described by
11-23 Subdivision (1).
11-24 SECTION 16. Subsections (e) and (g), Section 49.231, Water
11-25 Code, are amended to read as follows:
12-1 (e) [The commission shall hold a hearing on an application
12-2 submitted under Subsection (c).] Notice of an application
12-3 submitted under Subsection (c) [the hearing] shall be published by
12-4 the district in a form provided by the commission. The district
12-5 shall publish notice in a newspaper of general circulation in the
12-6 county or counties in which the district is located once a week for
12-7 two consecutive weeks. The district shall also send notice of the
12-8 application [The first publication must occur not later than the
12-9 30th day before the date of the hearing. The district shall send,
12-10 not later than the 30th day before the date of the hearing, notice
12-11 of the hearing] by certified mail, return receipt requested, to
12-12 each owner of undeveloped property in the district. On the date
12-13 the application is filed, the district's tax assessor and collector
12-14 shall certify to the district the names of the persons owning
12-15 undeveloped land in the district as reflected by the most recent
12-16 certified tax roll of the district. Notice of the application
12-17 [hearing] must be sent by certified mail, return receipt requested,
12-18 to each mortgagee of record that has submitted a written request to
12-19 be informed of any application for standby fees [hearings]. [To be
12-20 effective, the written request must be received by the district not
12-21 later than the 60th day before the date of the hearing.] The
12-22 written request for notice must include the name and address of the
12-23 mortgagee, the name of the property owner in the district, and a
12-24 brief property description. The commission may act on an
12-25 application without conducting a hearing if a public hearing is not
13-1 requested by the commission, the executive director, or an affected
13-2 person in the manner prescribed by commission rule during the 30
13-3 days following publication of the notice or receipt of mail
13-4 containing the notice under this subsection.
13-5 (g) The [After a hearing on an application under Subsection
13-6 (e), the] commission shall issue an order approving or
13-7 disapproving the application. The commission shall retain a copy
13-8 of the order and send a copy of the order to the district.
13-9 SECTION 17. Section 49.232, Water Code, is amended to read
13-10 as follows:
13-11 Sec. 49.232. LABORATORY AND ENVIRONMENTAL SERVICES. A
13-12 district may contract with any person, within or without the
13-13 boundaries of the district, to provide or receive laboratory or
13-14 environmental services related to environmental, health, or
13-15 drinking water testing.
13-16 SECTION 18. The heading to Subchapter I, Chapter 49, Water
13-17 Code, is amended to read as follows:
13-18 SUBCHAPTER I. CONSTRUCTION, EQUIPMENT, MATERIALS,
13-19 AND MACHINERY CONTRACTS
13-20 SECTION 19. Section 49.273, Water Code, is amended to read
13-21 as follows:
13-22 Sec. 49.273. [Construction] Contract Award. (a) The board
13-23 shall contract for construction and repair and renovation of
13-24 district facilities and for the purchase of equipment, materials,
13-25 machinery, and all things that constitute or will constitute the
14-1 plant, works, facilities, or improvements of the district in
14-2 accordance with this section. The bidding documents, plans,
14-3 specifications, and other data needed to bid on the project must be
14-4 available at the time of the first advertisement and the
14-5 advertisement shall state the location at which these documents may
14-6 be reviewed.
14-7 (b) A [construction] contract may cover all the work to be
14-8 provided for [by] the district or the various elements of the work
14-9 may be segregated for the purpose of receiving bids and awarding
14-10 contracts. A contract may provide that the work will be completed
14-11 [constructed] in stages over a period of years.
14-12 (c) A [construction] contract may provide for the payment of
14-13 a total sum that is the completed cost of the work or may be based
14-14 on bids to cover cost of units of the various elements entering
14-15 into the work as estimated and approximately specified by the
14-16 district's engineers, or a contract may be let and awarded in any
14-17 other form or composite of forms and to any responsible person or
14-18 persons that, in the board's judgment, will be most advantageous to
14-19 the district and result in the best and most economical completion
14-20 of the district's proposed plants, improvements, facilities, works,
14-21 equipment, and appliances.
14-22 (d) For [construction] contracts for $25,000 or more, the
14-23 board shall advertise the letting of the contract, including the
14-24 general conditions, time, and place of opening of sealed bids. The
14-25 notice shall be published in one or more newspapers circulated in
15-1 each county in which part of the district is located. If one
15-2 newspaper meets both of these requirements, publication in such
15-3 newspaper is sufficient. If there are more than four counties in
15-4 the district, notice may be published in any newspaper with general
15-5 circulation in the district. The notice shall be published once a
15-6 week for three consecutive weeks before the date that the bids are
15-7 opened, and the first publication shall be not later than the 21st
15-8 day before the date of the opening of the sealed bids.
15-9 (e) For [construction] contracts for $15,000 or more but
15-10 less than $25,000, the board shall solicit written competitive bids
15-11 on uniform written specifications from at least three bidders.
15-12 (f) For [construction] contracts of less than $15,000, the
15-13 board is not required to advertise or seek competitive bids.
15-14 (g) The board may not subdivide work to avoid the
15-15 advertising requirements specified in this section.
15-16 (h) The board may not accept bids that include substituted
15-17 items unless the substituted items were included in the original
15-18 bid proposal and all bidders had the opportunity to bid on the
15-19 substituted items or unless notice is given to all bidders at a
15-20 mandatory pre-bid conference.
15-21 (i) Change orders to contracts may be issued only as a
15-22 result of unanticipated conditions encountered during construction,
15-23 repair, or renovation or changes in regulatory criteria or to
15-24 facilitate project coordination with other political entities.
15-25 (j) The board is not required to advertise or seek
16-1 competitive bids for the repair of district facilities by the
16-2 district's operator if the cost of the repair is less than or equal
16-3 to the advertising requirements of this section [provisions of this
16-4 subchapter do not apply to contracts for personal or professional
16-5 services or for a utility service operator or to contracts made by
16-6 a district engaged in the distribution and sale of electric energy
16-7 to the public.]
16-8 [(k) The provisions of this subchapter do not apply to high
16-9 technology procurements. The provisions of Sections 252.021(a) and
16-10 252.042, Local Government Code, shall apply to high technology
16-11 procurements].
16-12 SECTION 20. Subchapter I, Chapter 49, Water Code, is amended
16-13 by adding Section 49.278 to read as follows:
16-14 Sec. 49.278. NONAPPLICABILITY. (a) This subchapter does
16-15 not apply to:
16-16 (1) equipment, materials, or machinery purchased by
16-17 the district at an auction that is open to the public;
16-18 (2) contracts for personal or professional services or
16-19 for a utility service operator;
16-20 (3) contracts made by a district engaged in the
16-21 distribution and sale of electric energy to the public; or
16-22 (4) high technology procurements.
16-23 (b) Sections 252.021(a) and 252.042, Local Government Code,
16-24 apply to high technology procurements.
16-25 SECTION 21. Section 49.301, Water Code, is amended by
17-1 amending Subsection (b) and adding Subsection (g) to read as
17-2 follows:
17-3 (b) If the district has bonds, notes, or other obligations
17-4 outstanding or bonds payable in whole or in part from taxes that
17-5 have been voted but are unissued, the board shall [may] require the
17-6 petitioner or petitioners to assume their share of the outstanding
17-7 bonds, notes, or other obligations and the voted but unissued tax
17-8 bonds of the district and authorize the board to levy a tax on
17-9 their property in each year while any of the bonds, notes, or other
17-10 obligations payable in whole or in part from taxation are
17-11 outstanding to pay their share of the indebtedness.
17-12 (g) An order issued by the board under this section is not
17-13 required to include all of the land described in the petition if
17-14 the board determines that a change in the description is necessary
17-15 or desirable.
17-16 SECTION 22. Subsection (f), Section 49.302, Water Code, is
17-17 amended to read as follows:
17-18 (f) A copy of the order annexing land to the district,
17-19 [signed by a majority of the members of the board and] attested by
17-20 the secretary of the board, shall be filed and recorded in the deed
17-21 records of the county or counties in which the district is located
17-22 if the land is finally annexed to the district.
17-23 SECTION 23. Section 49.351, Water Code, is amended by adding
17-24 Subsection (k) to read as follows:
17-25 (k) In this section, "fire-fighting activities" means all of
18-1 the customary and usual activities of a fire department, including
18-2 fire suppression, fire prevention, training, safety education,
18-3 maintenance, communications, medical emergency services,
18-4 photography, and administration.
18-5 SECTION 24. Subsection (b), Section 49.455, Water Code, is
18-6 amended to read as follows:
18-7 (b) The information form filed by a district under this
18-8 section shall include:
18-9 (1) the name of the district;
18-10 (2) the complete and accurate legal description of the
18-11 boundaries of the district;
18-12 (3) the most recent rate of district taxes on property
18-13 located in the district;
18-14 (4) the total amount of bonds that have been approved
18-15 by the voters and which may be issued by the district (excluding
18-16 refunding bonds and any bonds or portion of bonds payable solely
18-17 from revenues received or expected to be received pursuant to a
18-18 contract with a governmental entity);
18-19 (5) the aggregate initial principal amount of all
18-20 bonds of the district payable in whole or part from taxes
18-21 (excluding refunding bonds and any bonds or portion of bonds
18-22 payable solely from revenues received or expected to be received
18-23 pursuant to a contract with a governmental entity) that have been
18-24 previously issued [and remain outstanding];
18-25 (6) whether a standby fee is imposed by the district
19-1 and, if so, the amount of the standby fee;
19-2 (7) the date on which the election to confirm the
19-3 creation of the district was held if such was required;
19-4 (8) a statement of the functions performed or to be
19-5 performed by the district; and
19-6 (9) the particular form of Notice to Purchasers
19-7 required by Section 49.452 to be furnished by a seller to a
19-8 purchaser of real property in that district completed by the
19-9 district with all information required to be furnished by the
19-10 district.
19-11 If a district has not yet levied taxes, a statement to such
19-12 effect together with the district's most recent projected rate of
19-13 debt service tax shall be substituted for Subdivisions (3) and (4).
19-14 SECTION 25. Section 51.028, Water Code, is amended by
19-15 amending the heading and Subsection (a) to read as follows:
19-16 Sec. 51.028. MULTI-COUNTY DISTRICT: NOTICE AND [OF]
19-17 HEARING. (a) When a petition is filed, the commission shall give
19-18 notice of an application [a hearing] in the manner provided in
19-19 Section 49.011 and may conduct a hearing on the application if the
19-20 commission determines that a hearing is necessary under that
19-21 section [51.018 of this code].
19-22 SECTION 26. Subchapter B, Chapter 53, Water Code, is amended
19-23 by adding Section 53.020 to read as follows:
19-24 Sec. 53.020. TEMPORARY SUPERVISORS; QUALIFICATIONS. (a) If
19-25 the commissioners court grants a petition presented under Section
20-1 53.013, the court shall appoint five temporary supervisors to serve
20-2 on the board of the district until permanent supervisors are
20-3 elected.
20-4 (b) A temporary supervisor appointed under Subsection (a)
20-5 shall execute a bond as required under Section 49.055 and take the
20-6 oath of office.
20-7 (c) After the commissioners court appoints five temporary
20-8 supervisors under Subsection (a), the temporary supervisors shall
20-9 meet and organize.
20-10 SECTION 27. Section 54.018, Water Code, is amended to read
20-11 as follows:
20-12 Sec. 54.018. NOTICE AND HEARING ON DISTRICT CREATION
20-13 [ESTABLISHING A DATE OF HEARING]. If a petition is filed under
20-14 Section 54.014, the commission shall give notice of an application
20-15 as required by Section 49.011 and may conduct a hearing on the
20-16 application if the commission determines that a hearing is
20-17 necessary under Section 49.011 [On the filing of a petition, the
20-18 commission or someone authorized by the commission, shall fix a
20-19 date, time, and place at which the petition shall be heard and
20-20 shall issue notice of the date, time, and place of hearing. The
20-21 notice shall inform all persons of their right to appear and
20-22 present evidence and testify for or against the allegations in the
20-23 petition, the form of the petition, the necessity and feasibility
20-24 of the district's project, and the benefits to accrue].
20-25 SECTION 28. Subsection (a), Section 54.020, Water Code, is
21-1 amended to read as follows:
21-2 (a) If the commission determines that a hearing is necessary
21-3 under Section 49.011, the commission shall conduct a hearing and
21-4 accept evidence [At the hearing, the commission shall examine the
21-5 petition to ascertain its sufficiency, and any person interested
21-6 may appear before the commission in person or by attorney and offer
21-7 testimony] on the sufficiency of the petition and whether the
21-8 project is feasible and practicable and is necessary and would be a
21-9 benefit to all or any part of the land proposed to be included in
21-10 the district.
21-11 SECTION 29. Subsections (a) and (e), Section 54.021, Water
21-12 Code, are amended to read as follows:
21-13 (a) If the commission finds [After the hearing of the
21-14 petition if it is found] that the petition conforms to the
21-15 requirements of Section 54.015 [of this code] and that the project
21-16 is feasible and practicable and is necessary and would be a benefit
21-17 to the land to be included in the district, the commission shall so
21-18 find by its order and grant the petition.
21-19 (e) A copy of the order of the commission granting or
21-20 denying a petition shall be mailed to each city having
21-21 extraterritorial jurisdiction in the county or counties in which
21-22 the district is located who requested a hearing under Section
21-23 49.011 [notice of hearings as provided in Section 54.019 of this
21-24 code].
21-25 SECTION 30. Section 54.102, Water Code, is amended to read
22-1 as follows:
22-2 Sec. 54.102. QUALIFICATIONS FOR DIRECTORS. To be qualified
22-3 to serve as a director, a person shall be at least 18 [21] years
22-4 old, a resident citizen of the State of Texas, and either own land
22-5 subject to taxation in the district or be a qualified voter within
22-6 the district.
22-7 SECTION 31. Subsection (b), Section 54.774, Water Code, is
22-8 amended to read as follows:
22-9 (b) Except as provided in Subsection (a) [of this section],
22-10 a district may acquire recreational facilities and obtain funds to
22-11 develop and maintain them in the same manner as authorized
22-12 elsewhere in this code for the acquisition, development, and
22-13 maintenance of other facilities of the district. Without limiting
22-14 the foregoing, a district may charge fees directly to the users of
22-15 recreational facilities and to water and wastewater customers of
22-16 the district, regardless of whether the customers are located
22-17 within or outside the boundaries of the district, to pay for all or
22-18 part of the cost of their development and maintenance. For
22-19 purposes of enforcing payment of an unpaid fee charged under this
22-20 subsection, the district may:
22-21 (1) seek legal restitution of the unpaid fee; and
22-22 (2) refuse use of a recreational facility to the
22-23 person who owes the unpaid fee, except that the district may not
22-24 discontinue use of other facilities or services.
22-25 SECTION 32. Subsection (b), Section 54.802, Water Code, is
23-1 amended to read as follows:
23-2 (b) The board shall adopt a proposed plan for improvements
23-3 in the defined area or to serve the designated property in the
23-4 manner provided by Section 49.106 [Sections 54.506-54.507 of this
23-5 code].
23-6 SECTION 33. Subsection (a), Section 54.806, Water Code, is
23-7 amended to read as follows:
23-8 (a) Before the adopted plans may become effective, they must
23-9 be approved by the voters in the defined area or within the
23-10 boundaries of the designated property. The election shall be
23-11 conducted as provided by Section 49.106 [this chapter] for an
23-12 election to authorize the issuance of bonds.
23-13 SECTION 34. Section 55.040, Water Code, is amended to read
23-14 as follows:
23-15 Sec. 55.040. MULTI-COUNTY DISTRICT: PETITION. Creation of
23-16 a district composed of land in two or more counties may be
23-17 initiated by presenting a petition to the commission signed by the
23-18 owners of more than half the land in the proposed district or by 50
23-19 qualified property taxpaying electors of the territory of the
23-20 proposed district. The petition shall describe the boundaries of
23-21 the proposed district and[,] request an order on [a hearing to
23-22 determine] the advisability of creating the district[,] and
23-23 [request] an order for an election.
23-24 SECTION 35. Section 55.042, Water Code, is amended to read
23-25 as follows:
24-1 Sec. 55.042. MULTI-COUNTY DISTRICT: HEARING. If the
24-2 commission determines that a hearing is necessary under Section
24-3 49.011, the commission shall conduct a hearing and [At the
24-4 hearing,] any person whose land would be affected by creation of
24-5 the district may appear and support or oppose creation of the
24-6 proposed district, and may offer competent testimony to show that
24-7 the district would or would not serve a beneficial purpose, be
24-8 practicable, or accomplish the purposes intended.
24-9 SECTION 36. Section 58.027, Water Code, is amended by
24-10 amending the heading and Subsection (a) to read as follows:
24-11 Sec. 58.027. MULTICOUNTY DISTRICT: CONSIDERATION [HEARING]
24-12 BY COMMISSION. (a) The commission shall have exclusive
24-13 jurisdiction and power to consider [hear] and determine all
24-14 petitions for creation of a district that will include land or
24-15 property located in two or more counties.
24-16 SECTION 37. Section 58.028, Water Code, is amended to read
24-17 as follows:
24-18 Sec. 58.028. MULTICOUNTY DISTRICT: NOTICE AND [OF] HEARING
24-19 ON DISTRICT CREATION. [(a)] When a petition is filed, the
24-20 commission shall give notice of an application [a hearing] in the
24-21 manner provided in Section 49.011 and may conduct a hearing on the
24-22 application if the commission determines that a hearing is
24-23 necessary under that section [58.018 of this code].
24-24 [(b) The notice shall be posted at the courthouse door, on
24-25 the bulletin board used for posting legal notices, in each county
25-1 in which the district may be located.]
25-2 [(c) The notice shall be published in one or more newspapers
25-3 with general circulation in the area of the proposed district.]
25-4 SECTION 38. Section 58.030, Water Code, is amended to read
25-5 as follows:
25-6 Sec. 58.030. MULTICOUNTY DISTRICT: CONSIDERATION BY
25-7 [HEARING OF] COMMISSION; PROCEDURE. (a) The commission shall
25-8 [hear,] consider[,] and determine on the issues a petition filed
25-9 under Section 58.028 [of this code].
25-10 (b) The [At the hearing of the petition, the] commission
25-11 shall be governed by the provisions of Section 58.021 [of this
25-12 code].
25-13 SECTION 39. Subsection (a), Section 59.007, Water Code, is
25-14 amended to read as follows:
25-15 (a) If [after the hearing of the petition] the commission
25-16 finds after considering the petition that the petition conforms to
25-17 the requirements of this chapter and that the creation of the
25-18 district would be of benefit to the territory to be included in the
25-19 district, the commission shall issue an order granting the petition
25-20 for creation. If the commission finds that part of the territory
25-21 included in the proposed district will not benefit from the
25-22 creation of the district, the commission shall exclude that
25-23 territory from the proposed district and redefine the proposed
25-24 district's boundaries accordingly.
25-25 SECTION 40. Section 65.018, Water Code, is amended to read
26-1 as follows:
26-2 Sec. 65.018. NOTICE AND HEARING ON DISTRICT CREATION
26-3 [ESTABLISHING DATE OF HEARING]. If a resolution is filed under
26-4 Section 65.014, the commission shall give notice of an application
26-5 as required by Section 49.011 and may conduct a hearing on the
26-6 application if the commission determines that a hearing is
26-7 necessary under Section 49.011 [(a) On the filing of a resolution,
26-8 the commission shall set a date, time, and place at which the
26-9 resolution will be heard and shall issue notice of the date, time,
26-10 and place of hearing.]
26-11 [(b) The notice shall inform all persons of their right to
26-12 appear and present evidence and testify for or against the material
26-13 included in the resolution, the form of the resolution, the
26-14 necessity and feasibility of the water supply corporation's request
26-15 for conversion, and the benefits to accrue from conversion].
26-16 SECTION 41. Subsection (a), Section 65.020, Water Code, is
26-17 amended to read as follows:
26-18 (a) If the commission determines that a hearing is necessary
26-19 under Section 49.011, the commission shall conduct a hearing and
26-20 accept evidence [At the hearing, the commission shall examine the
26-21 resolution to determine if it is sufficient, and any person
26-22 interested may appear before the commission in person or by
26-23 attorney and offer testimony] on the sufficiency of the resolution
26-24 and whether or not the request for conversion is feasible and
26-25 practicable and is necessary and would be a benefit to all or any
27-1 part of the land proposed to be included in the district.
27-2 SECTION 42. Subsection (a), Section 65.021, Water Code, is
27-3 amended to read as follows:
27-4 (a) If [After the hearing on the resolution, if] the
27-5 commission finds that the resolution conforms to the requirements
27-6 of Section 65.015 [of this code] and that the request for
27-7 conversion is feasible and practicable and is necessary and would
27-8 be a benefit to the land proposed to be included in the district,
27-9 the commission shall make these findings in an order and shall
27-10 authorize the creation of the district on approval at the
27-11 confirmation and directors' election called and held under this
27-12 subchapter.
27-13 SECTION 43. Section 65.103, Water Code, is amended by
27-14 amending Subsection (c) and adding Subsection (d) to read as
27-15 follows:
27-16 (c) The method for determining the initial terms for each of
27-17 the directors constituting the initial board shall be determined by
27-18 the temporary directors, and the terms must be clearly stated on
27-19 the ballot for the confirmation and directors' election. [At
27-20 subsequent elections in each following year in which there is an
27-21 election, the election must be held on the same uniform election
27-22 date as the confirmation and directors' election, and the terms of
27-23 the directors being elected must be stated on the ballot.]
27-24 (d) Notwithstanding Sections 41.001 and 41.003, Election
27-25 Code, the board may hold an election to elect directors on any date
28-1 determined by the board. The terms of directors must be stated on
28-2 the ballot.
28-3 SECTION 44. Section 66.018, Water Code, is amended to read
28-4 as follows:
28-5 Sec. 66.018. NOTICE AND HEARING ON DISTRICT CREATION. If a
28-6 petition is filed under Section 66.014, the commission shall give
28-7 notice of an application as required by Section 49.011 and may
28-8 conduct a hearing if the commission determines that a hearing is
28-9 necessary under Section 49.011 [(a) On receiving a petition to
28-10 create a district, the commission or a person designated by it
28-11 shall set a date for a hearing on the petition.]
28-12 [(b) After a date is set for the hearing, the executive
28-13 director shall give notice of the hearing and the commission shall
28-14 hold the hearing and issue an order stating its final decision in
28-15 the manner provided by Chapter 2001, Government Code. In addition
28-16 to other notice required by law, the executive director shall
28-17 publish notice in a newspaper with general circulation in the area
28-18 of the proposed district once a week for two consecutive weeks, the
28-19 first publication to be made at least 30 days before the date set
28-20 for the hearing].
28-21 SECTION 45. Subsection (a), Section 66.019, Water Code, is
28-22 amended to read as follows:
28-23 (a) After considering the petition [the hearing], the
28-24 commission shall grant the petition if it finds that:
28-25 (1) the petition conforms to the requirements of
29-1 Sections 66.014 and 66.015 [of this code]; and
29-2 (2) the projects proposed by the district are feasible
29-3 and practicable, are necessary, and will be a benefit to land
29-4 included in the district.
29-5 SECTION 46. Subsection (b), Section 6.003, Civil Practice
29-6 and Remedies Code, is amended to read as follows:
29-7 (b) The following are exempt from the appeal bond
29-8 requirements:
29-9 (1) a water improvement district, a water control and
29-10 improvement district, an irrigation district, a conservation and
29-11 reclamation district, or a water control and preservation district
29-12 organized under state law;
29-13 (2) a levee improvement district organized under state
29-14 law; [and]
29-15 (3) a drainage district organized under state law; and
29-16 (4) an entity created under Section 52, Article III,
29-17 or Section 59, Article XVI, Texas Constitution.
29-18 SECTION 47. Section 16.061, Civil Practice and Remedies
29-19 Code, is amended to read as follows:
29-20 Sec. 16.061. RIGHTS NOT BARRED. (a) A right of action of
29-21 this state or a political subdivision of the state, including a
29-22 county, an incorporated city or town, a navigation district, a
29-23 municipal utility district, a port authority, an entity acting
29-24 under Chapter 341, Acts of the 57th Legislature, Regular Session,
29-25 1961 (Article 1187f, Vernon's Texas Civil Statutes), [or] a school
30-1 district, or an entity created under Section 52, Article III, or
30-2 Section 59, Article XVI, Texas Constitution, is not barred by any
30-3 of the following sections: 16.001-16.004, 16.006, 16.007,
30-4 16.021-16.028, 16.030-16.032, 16.035-16.037, 16.051, 16.062,
30-5 16.063, 16.065-16.067, 16.070, 16.071, 31.006, or 71.021.
30-6 (b) In this section:
30-7 (1) "Navigation district" means a navigation district
30-8 organized under Section 52, Article III, [Section 52,] or Section
30-9 59, Article XVI, [Section 59, of the] Texas Constitution.
30-10 (2) "Port authority" has the meaning assigned by
30-11 Section 60.402, Water Code.
30-12 (3) "Municipal utility district" means a municipal
30-13 utility district created under Section 52, Article III, or Section
30-14 59, Article XVI, Texas Constitution.
30-15 SECTION 48. Subsection (a), Section 41.031, Election Code,
30-16 is amended to read as follows:
30-17 (a) Except as provided by Section 41.033, the [The] polls
30-18 shall be opened at 7 a.m. for voting and shall be closed at 7 p.m.
30-19 SECTION 49. Subchapter B, Chapter 41, Election Code, is
30-20 amended by adding Section 41.033 to read as follows:
30-21 Sec. 41.033. EARLY CLOSING OF CERTAIN POLLS.
30-22 Notwithstanding Section 41.031(a), an entity created under Section
30-23 52, Article III, or Section 59, Article XVI, Texas Constitution,
30-24 may close the polls before 7 p.m. in an election held by the entity
30-25 if:
31-1 (1) the entity has fewer than 50 qualified voters; and
31-2 (2) the number of ballots cast in the election equals
31-3 the number of qualified voters.
31-4 SECTION 50. Section 140.006, Local Government Code, is
31-5 amended by amending Subsection (a) and adding Subsection (e) to
31-6 read as follows:
31-7 (a) Except as provided by Subsections [Subsection] (c) and
31-8 (e), the presiding officer of a governing body shall submit a
31-9 financial statement prepared under Section 140.005 to a newspaper
31-10 in each county in which the district or any part of the district is
31-11 located.
31-12 (e) This section does not apply to an entity created under
31-13 Section 52, Article III, or Section 59, Article XVI, Texas
31-14 Constitution.
31-15 SECTION 51. Subsection (d), Section 191.0525, Natural
31-16 Resources Code, is amended to read as follows:
31-17 (d) A project for a county, [or] municipality, or an entity
31-18 created under Section 52, Article III, or Section 59, Article XVI,
31-19 Texas Constitution, requires advance project review only if the
31-20 project affects a cumulative area larger than five acres or
31-21 disturbs a cumulative area of more than 5,000 cubic yards,
31-22 whichever measure is triggered first, or if the project is inside a
31-23 designated historic district or recorded archeological site.
31-24 SECTION 52. Subdivision (3), Section 1.04, Tax Code, is
31-25 amended to read as follows:
32-1 (3) "Improvement" means:
32-2 (A) a building, structure, fixture, or fence
32-3 erected on or affixed to land; [or]
32-4 (B) a transportable structure that is designed
32-5 to be occupied for residential or business purposes, whether or not
32-6 it is affixed to land, if the owner of the structure owns the land
32-7 on which it is located, unless the structure is unoccupied and held
32-8 for sale or normally is located at a particular place only
32-9 temporarily; or
32-10 (C) for purposes of an entity created under
32-11 Section 52, Article III, or Section 59, Article XVI, Texas
32-12 Constitution, the:
32-13 (i) subdivision of land by plat;
32-14 (ii) installation of water, sewer, or
32-15 drainage lines; or
32-16 (iii) paving of undeveloped land.
32-17 SECTION 53. Subdivisions (8) and (17), Section 26.012, Tax
32-18 Code, are amended to read as follows:
32-19 (8) "Debt service" means the total amount expended or
32-20 to be expended by a taxing unit from property tax revenues to pay
32-21 principal of and interest on debts or other payments required by
32-22 contract to secure the debts and, if the unit is created under
32-23 Section 52, Article III, or Section 59, Article XVI, Texas
32-24 Constitution, payments on debts that the unit anticipates incurring
32-25 in the next calendar year.
33-1 (17) "New property value" means:
33-2 (A) the total taxable value of property added to
33-3 the appraisal roll in the current year by annexation and
33-4 improvements listed on the appraisal roll that were made after
33-5 January 1 of the preceding tax year, including personal property
33-6 located in new improvements that was brought into the unit after
33-7 January 1 of the preceding tax year; [and]
33-8 (B) property value that is included in the
33-9 current total value for the tax year succeeding a tax year in which
33-10 any portion of the value of the property was excluded from the
33-11 total value because of the application of a tax abatement agreement
33-12 to all or a portion of the property, less the value of the property
33-13 that was included in the total value for the preceding tax year;
33-14 and
33-15 (C) for purposes of an entity created under
33-16 Section 52, Article III, or Section 59, Article XVI, Texas
33-17 Constitution, property value that is included in the current total
33-18 value for the tax year succeeding a tax year in which the following
33-19 occurs:
33-20 (i) the subdivision of land by plat;
33-21 (ii) the installation of water, sewer, or
33-22 drainage lines; or
33-23 (iii) the paving of undeveloped land.
33-24 SECTION 54. Subsection (e), Section 26.04, Tax Code, is
33-25 amended to read as follows:
34-1 (e) By August 7 or as soon thereafter as practicable, the
34-2 designated officer or employee shall submit the rates to the
34-3 governing body. He shall deliver by mail to each property owner in
34-4 the unit or publish in a newspaper in the form prescribed by the
34-5 comptroller:
34-6 (1) the effective tax rate, the rollback tax rate, and
34-7 an explanation of how they were calculated;
34-8 (2) the estimated amount of interest and sinking fund
34-9 balances and the estimated amount of maintenance and operation or
34-10 general fund balances remaining at the end of the current fiscal
34-11 year that are not encumbered with or by corresponding existing debt
34-12 obligation, except that for a school district, estimated funds
34-13 necessary for the operation of the district prior to the receipt of
34-14 the first state education aid payment in the succeeding school year
34-15 shall be subtracted from the estimated fund balances;
34-16 (3) a schedule of the unit's debt obligations showing:
34-17 (A) the amount of principal and interest that
34-18 will be paid to service the unit's debts in the next year from
34-19 property tax revenue, including payments of lawfully incurred
34-20 contractual obligations providing security for the payment of the
34-21 principal of and interest on bonds and other evidences of
34-22 indebtedness issued on behalf of the unit by another political
34-23 subdivision and, if the unit is created under Section 52, Article
34-24 III, or Section 59, Article XVI, Texas Constitution, payments on
34-25 debts that the unit anticipates to incur in the next calendar year;
35-1 (B) the amount by which taxes imposed for debt
35-2 are to be increased because of the unit's anticipated collection
35-3 rate; and
35-4 (C) the total of the amounts listed in
35-5 Paragraphs (A)-(B), less any amount collected in excess of the
35-6 previous year's anticipated collections certified as provided in
35-7 Subsection (b) [of this section];
35-8 (4) the amount of additional sales and use tax revenue
35-9 anticipated in calculations under Section 26.041 [of this code];
35-10 (5) in the year that a taxing unit calculates an
35-11 adjustment under Section 26.04(k) or (l) [of this code], the unit
35-12 shall publish a schedule that includes the following elements:
35-13 (A) the name of the unit discontinuing the
35-14 department, function, or activity;
35-15 (B) the amount of property tax revenue spent by
35-16 the unit listed under Paragraph (A) of this subsection to operate
35-17 the discontinued department, function, or activity in the 12 months
35-18 preceding the month in which the calculations required by this
35-19 chapter are made; and
35-20 (C) the name of the unit that operates a
35-21 distinct department, function, or activity in all or a majority of
35-22 the territory of a taxing unit that has discontinued operating the
35-23 distinct department, function, or activity; and
35-24 (6) in the year following the year in which a taxing
35-25 unit raised its rollback rate as required by Section 26.04(l) [of
36-1 this code], the taxing unit shall publish a schedule that includes
36-2 the following elements:
36-3 (A) the amount of property tax revenue spent by
36-4 the unit to operate the department, function, or activity for which
36-5 the taxing unit raised the rollback rate as required by Section
36-6 26.04(l) [of this code] for the 12 months preceding the month in
36-7 which the calculations required by this chapter are made; and
36-8 (B) the amount published by the unit in the
36-9 preceding tax year under Section 26.04(e)(5)(B) [of this code].
36-10 SECTION 55. Sections 50.501, 51.030, 51.409, 53.071, 54.019,
36-11 54.511, 54.515, 55.041, and 65.019, Water Code, and Subsection (e),
36-12 Section 42.042, Local Government Code, are repealed.
36-13 SECTION 56. The importance of this legislation and the
36-14 crowded condition of the calendars in both houses create an
36-15 emergency and an imperative public necessity that the
36-16 constitutional rule requiring bills to be read on three several
36-17 days in each house be suspended, and this rule is hereby suspended,
36-18 and that this Act take effect and be in force from and after its
36-19 passage, and it is so enacted.
S.B. No. 1865
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1865 passed the Senate on
April 11, 1997, by the following vote: Yeas 29, Nays 0;
May 21, 1997, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 22, 1997, House
granted request of the Senate; May 30, 1997, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1865 passed the House, with
amendments, on May 13, 1997, by the following vote: Yeas 141,
Nays 2, two present not voting; May 22, 1997, House granted request
of the Senate for appointment of Conference Committee;
May 30, 1997, House adopted Conference Committee Report by a
non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor