75R13292 JMC-D
By Armbrister S.B. No. 1865
Substitute the following for S.B. No. 1865:
By Walker C.S.S.B. No. 1865
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration, management, operation, and
1-3 authority of water districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 36.014, Water Code, is amended to read as
1-6 follows:
1-7 Sec. 36.014. NOTICE AND HEARING ON DISTRICT CREATION. (a)
1-8 If a petition is filed under Section 36.013, the commission shall
1-9 give notice of an application as required by Section 49.011(a) and
1-10 may conduct a hearing on the application if the commission
1-11 determines that a hearing is necessary under Section 49.011 [The
1-12 notice of hearing on a petition must include a statement of the
1-13 nature and purpose of the proposed district and the date, time, and
1-14 place of hearing].
1-15 (b) [The notice must be posted on the bulletin board used
1-16 for posting legal notices in each county in which all or part of
1-17 the proposed district is to be located.]
1-18 [(c) Notice of the hearing shall be published in a newspaper
1-19 with general circulation in the county or counties in which the
1-20 proposed district is to be located. Notice must be published not
1-21 later than the 30th day before the date of the hearing.]
1-22 [(d)] If the petition contains a request to create a
1-23 management area in all or part of the proposed district, the notice
1-24 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.
2-26 SECTION 3. Section 49.057(e), Water Code, is amended to read
2-27 as follows:
3-1 (e) The board shall require an officer, employee, or
3-2 consultant, including a bookkeeper, financial advisor, or system
3-3 operator, who routinely collects, pays, or handles any funds of the
3-4 district to furnish good and sufficient bond, payable to the
3-5 district, in an amount determined by the board to be sufficient to
3-6 safeguard the district. The board may require a consultant who
3-7 does not routinely collect, pay, or handle funds of the district to
3-8 furnish a bond. The bond shall be conditioned on the faithful
3-9 performance of that person's duties and on accounting for all funds
3-10 and property of the district. Such bond shall be signed or
3-11 endorsed by a surety company authorized to do business in the
3-12 state.
3-13 SECTION 4. Section 49.103, Water Code, is amended by
3-14 amending Subsections (e) and (f) and adding Subsection (g) to read
3-15 as follows:
3-16 (e) Section 49.002 notwithstanding, in all areas of conflict
3-17 the provisions of Subsections (a) and [Subsection] (b) shall take
3-18 precedence over all prior statutory enactments.
3-19 (f) This section does not apply to:
3-20 (1) any special law district or authority that is not
3-21 required by the law creating the district or authority to elect its
3-22 directors by the public; or
3-23 (2) a special utility district operating under Chapter
3-24 65.
3-25 (g) A district may, if required under this section to change
3-26 the terms of office of directors to four-year terms or to change
3-27 the date on which the district holds a director election, extend
4-1 the terms of office of directors serving the district on the
4-2 effective date of H.B. No. 2236, Acts of the 75th Legislature,
4-3 Regular Session, 1997, to continue the terms until the next
4-4 appropriate election date in an even-numbered year. A district
4-5 that is required under this section to change the terms of office
4-6 of directors to staggered terms may require directors of the
4-7 district to draw lots to achieve staggered terms.
4-8 SECTION 5. Section 49.106, Water Code, is amended by adding
4-9 Subsection (d) to read as follows:
4-10 (d) A bond election may be called as a result of an
4-11 agreement to annex additional territory into the district.
4-12 SECTION 6. Section 49.108, Water Code, is amended by
4-13 amending Subsection (b) and adding Subsection (e) to read as
4-14 follows:
4-15 (b) A district may make payments under a contract from taxes
4-16 other than operation and maintenance taxes after the provisions of
4-17 the contract have been approved by a majority of the qualified
4-18 voters [electors] voting at an election held for that purpose. A
4-19 contract approved by the qualified voters of a district may contain
4-20 a provision stating that the contract may be modified or amended by
4-21 the board without voter approval.
4-22 (e) A district that is required under Section 49.181 to
4-23 obtain approval by the commission of the district's issuance of
4-24 bonds must obtain approval by the executive director before the
4-25 district enters into an obligation under this section to collect
4-26 tax for debt that exceeds three years. This subsection does not
4-27 apply to contract taxes that are levied to pay for a district's
5-1 share of bonds that have been issued by another district and
5-2 approved by the commission.
5-3 SECTION 7. Section 49.153, Water Code, is amended by
5-4 amending Subsection (c) and adding Subsection (e) to read as
5-5 follows:
5-6 (c) Except as provided by Subsection (e), a [A] district may
5-7 not execute a note for a term longer than three years unless the
5-8 commission issues an order approving the note.
5-9 (e) Subsection (c) does not apply to:
5-10 (1) a note issued to and approved by the:
5-11 (A) Farmers Home Administration;
5-12 (B) United States Department of Agriculture; or
5-13 (C) Texas Water Development Board; or
5-14 (2) a district described by Section 49.181(h).
5-15 SECTION 8. Section 49.181(h), Water Code, is amended to read
5-16 as follows:
5-17 (h) This section does not apply to a district if:
5-18 (1) the district's boundaries include one entire
5-19 county;
5-20 (2) the district was created by a special Act of the
5-21 legislature and:
5-22 (A) the district is located entirely within one
5-23 county;
5-24 (B) entirely within one or more home-rule
5-25 municipalities;
5-26 (C) the total taxable value of the real property
5-27 and improvements to the real property zoned by one or more
6-1 home-rule municipalities for residential purposes and located
6-2 within the district does not exceed 25 percent of the total taxable
6-3 value of all taxable property in the district, as shown by the most
6-4 recent certified appraisal tax roll prepared by the appraisal
6-5 district for the county; and
6-6 (D) the district was not required by law to
6-7 obtain commission approval of its bonds before the effective date
6-8 of this section;
6-9 (3) the district is a special water authority; or
6-10 (4) the district is governed by a board of directors
6-11 appointed in whole or in part by the governor, a state agency, or
6-12 the governing body or chief elected official of a municipality or
6-13 county and does not provide, or propose to provide, water, [and]
6-14 sewer, drainage, reclamation, or flood control services to
6-15 residential retail customers as its principal function.
6-16 SECTION 9. Subchapter F, Chapter 49, Water Code, is amended
6-17 by adding Section 49.186 to read as follows:
6-18 Sec. 49.186. AUTHORIZED INVESTMENTS; SECURITY FOR FUNDS.
6-19 (a) All bonds, notes, and other obligations issued by a district
6-20 shall be legal and authorized investments for all banks, trust
6-21 companies, building and loan associations, savings and loan
6-22 associations, insurance companies of all kinds and types,
6-23 fiduciaries, and trustees, and for all interest and sinking funds
6-24 and other public funds of the state, and all agencies,
6-25 subdivisions, and instrumentalities of the state, including all
6-26 counties, cities, towns, villages, school districts, and all other
6-27 kinds and types of districts, public agencies, and bodies politic.
7-1 (b) A district's bonds, notes, and other obligations are
7-2 eligible and lawful security for all deposits of public funds of
7-3 the state, and all agencies, subdivisions, and instrumentalities of
7-4 the state, including all counties, cities, towns, villages, school
7-5 districts, and all other kinds and types of districts, public
7-6 agencies, and bodies politic, to the extent of the market value of
7-7 the bonds, notes, and other obligations when accompanied by any
7-8 unmatured interest coupons attached to them.
7-9 SECTION 10. Section 49.198(a), Water Code, is amended to
7-10 read as follows:
7-11 (a) A district [that is not collecting taxes] may elect to
7-12 file annual financial reports with the executive director in lieu
7-13 of the district's compliance with Section 49.191 provided:
7-14 (1) the district had no bonds or other long-term (more
7-15 than one year) liabilities outstanding during the fiscal period;
7-16 (2) the district did not have gross receipts from
7-17 operations, loans, taxes, or contributions in excess of $100,000
7-18 during the fiscal period; and
7-19 (3) the district's cash and temporary investments were
7-20 not in excess of $100,000 at any time during the fiscal period.
7-21 SECTION 11. Section 49.211, Water Code, is amended by adding
7-22 Subsections (c) and (d) to read as follows:
7-23 (c) A district that is authorized by law to engage in
7-24 drainage or flood control activities may adopt:
7-25 (1) a master drainage plan, including rules relating
7-26 to the plan and design criteria for drainage channels, facilities,
7-27 and flood control improvements;
8-1 (2) rules for construction activity to be conducted
8-2 within the district that:
8-3 (A) reasonably relate to providing adequate
8-4 drainage or flood control; and
8-5 (B) use generally accepted engineering criteria;
8-6 and
8-7 (3) reasonable procedures to enforce rules adopted by
8-8 the district under this subsection.
8-9 (d) If a district adopts a master drainage plan under
8-10 Subsection (c)(1), the district may adopt rules relating to review
8-11 and approval of proposed drainage plans submitted by property
8-12 developers. A district that reviews a proposed drainage plan under
8-13 rules adopted under this subsection shall, if the district fails to
8-14 approve the proposed plan, prepare a written report that identifies
8-15 the areas that are not in compliance with the district's master
8-16 drainage plan or rules adopted under Subsection (c).
8-17 SECTION 12. Section 49.212(d), Water Code, is amended to
8-18 read as follows:
8-19 (d) Notwithstanding any provision of law to the contrary, a
8-20 district that charges a fee that is an impact fee as described in
8-21 Section 395.001(4), Local Government Code, must comply with Chapter
8-22 395, Local Government Code. A charge or fee by a district for
8-23 construction, installation, or inspection of a tap or connection to
8-24 district water, sanitary sewer, or drainage facilities, including
8-25 all necessary service lines and meters, or for wholesale facilities
8-26 that serve such water, sanitary sewer, or drainage facilities that
8-27 (i) does not exceed three times the actual and reasonable costs to
9-1 the district for such tap or connection [work] or (ii) if made to a
9-2 nontaxable entity for retail or wholesale service, does not exceed
9-3 the actual costs to the district for such work and for all
9-4 facilities that are necessary to provide district services to such
9-5 entity and that are financed or are to be financed in whole or in
9-6 part by tax-supported or revenue bonds of the district, shall not
9-7 be deemed [or considered] to be an impact fee under Chapter 395,
9-8 Local Government Code.
9-9 SECTION 13. Section 49.218(a), Water Code, is amended to
9-10 read as follows:
9-11 (a) A district or a water supply corporation may acquire
9-12 land, an interest in land, materials, waste grounds, easements,
9-13 rights-of-way, equipment, contract or permit rights or interests,
9-14 and other property, real or personal, considered necessary for the
9-15 purpose of accomplishing any one or more of the district's or water
9-16 supply corporation's purposes provided in this code or in any other
9-17 law.
9-18 SECTION 14. Sections 49.226(a) and (b), Water Code, are
9-19 amended to read as follows:
9-20 (a) Any personal property valued at more than $300 or any
9-21 land or[,] interest in land[, or personal property] owned by the
9-22 district which is found by the board to be surplus and is not
9-23 needed by the district may be sold under order of the board either
9-24 by public or private sale, or the land, interest in land, or
9-25 personal property may be exchanged for other land, interest in
9-26 land, or personal property needed by the district. Except as
9-27 provided in Subsection (b), land, interest in land, or personal
10-1 property must be exchanged for like fair market value, which value
10-2 may be determined by the district.
10-3 (b) Any property dedicated to or acquired by the district
10-4 without expending district funds may be abandoned or released to
10-5 the original grantor, the grantor's heirs, assigns, executors, or
10-6 successors upon terms and conditions deemed necessary or
10-7 advantageous to the district and without receiving compensation for
10-8 such abandonment or release. District property may also be
10-9 abandoned, released, exchanged, or transferred to another district,
10-10 municipality, county, countywide agency, or authority upon terms
10-11 and conditions deemed necessary or advantageous to the district.
10-12 Narrow strips of property resulting from boundary or surveying
10-13 conflicts or similar causes, or from insubstantial encroachments by
10-14 abutting property owners, or property of larger configuration that
10-15 has been subject to encroachments by abutting property owners for
10-16 more than 25 years may be abandoned, released, exchanged, or
10-17 transferred to such abutting owners upon terms and conditions
10-18 deemed necessary or advantageous to the district. Chapter 272,
10-19 Local Government Code, shall not apply to this subsection.
10-20 SECTION 15. Subchapter H, Chapter 49, Water Code, is amended
10-21 by adding Section 49.2261 to read as follows:
10-22 Sec. 49.2261. PURCHASE, SALE, OR OTHER EXCHANGE OF WATER OR
10-23 WATER RIGHTS. Notwithstanding any other law, the district may:
10-24 (1) purchase, acquire, sell, transfer, lease, or
10-25 otherwise exchange water or water rights under an agreement between
10-26 the district and a person or entity that contains terms that are
10-27 considered advantageous to the district; and
11-1 (2) employ agents, consultants, brokers,
11-2 professionals, or other persons that the board determines are
11-3 necessary or appropriate to conduct a transaction described by
11-4 Subdivision (1).
11-5 SECTION 16. Sections 49.231(e) and (g), Water Code, are
11-6 amended to read as follows:
11-7 (e) [The commission shall hold a hearing on an application
11-8 submitted under Subsection (c).] Notice of an application
11-9 submitted under Subsection (c) [the hearing] shall be published by
11-10 the district in a form provided by the commission. The district
11-11 shall publish notice in a newspaper of general circulation in the
11-12 county or counties in which the district is located once a week for
11-13 two consecutive weeks. The district shall also send notice of the
11-14 application [The first publication must occur not later than the
11-15 30th day before the date of the hearing. The district shall send,
11-16 not later than the 30th day before the date of the hearing, notice
11-17 of the hearing] by certified mail, return receipt requested, to
11-18 each owner of undeveloped property in the district. On the date
11-19 the application is filed, the district's tax assessor and collector
11-20 shall certify to the district the names of the persons owning
11-21 undeveloped land in the district as reflected by the most recent
11-22 certified tax roll of the district. Notice of the application
11-23 [hearing] must be sent by certified mail, return receipt requested,
11-24 to each mortgagee of record that has submitted a written request to
11-25 be informed of any application for standby fees [hearings]. [To be
11-26 effective, the written request must be received by the district not
11-27 later than the 60th day before the date of the hearing.] The
12-1 written request for notice must include the name and address of the
12-2 mortgagee, the name of the property owner in the district, and a
12-3 brief property description. The commission may act on an
12-4 application without conducting a hearing if a public hearing is not
12-5 requested by the commission, the executive director, or an affected
12-6 person in the manner prescribed by commission rule during the 30
12-7 days following publication of the notice or receipt of mail
12-8 containing the notice under this subsection.
12-9 (g) The [After a hearing on an application under Subsection
12-10 (e), the] commission shall issue an order approving or
12-11 disapproving the application. The commission shall retain a copy
12-12 of the order and send a copy of the order to the district.
12-13 SECTION 17. Section 49.232, Water Code, is amended to read
12-14 as follows:
12-15 Sec. 49.232. LABORATORY AND ENVIRONMENTAL SERVICES. A
12-16 district may contract with any person, within or without the
12-17 boundaries of the district, to provide or receive laboratory or
12-18 environmental services related to environmental, health, or
12-19 drinking water testing.
12-20 SECTION 18. Subchapter H, Chapter 49, Water Code, is amended
12-21 by adding Section 49.233 to read as follows:
12-22 Sec. 49.233. NONLIABILITY FOR WATER SAFETY. A district is
12-23 not liable to a person for an injury arising from the placement,
12-24 failure to place, absence, condition, or malfunction of a buoy,
12-25 beacon, sign, or warning device on or near water and within the
12-26 district.
12-27 SECTION 19. The heading to Subchapter I, Chapter 49, Water
13-1 Code, is amended to read as follows:
13-2 SUBCHAPTER I. CONSTRUCTION, EQUIPMENT, MATERIALS,
13-3 AND MACHINERY CONTRACTS
13-4 SECTION 20. Section 49.273, Water Code, is amended to read
13-5 as follows:
13-6 Sec. 49.273. [Construction] Contract Award. (a) The board
13-7 shall contract for construction and repair and renovation of
13-8 district facilities and for the purchase of equipment, materials,
13-9 machinery, and all things that constitute or will constitute the
13-10 plant, works, facilities, or improvements of the district in
13-11 accordance with this section. The bidding documents, plans,
13-12 specifications, and other data needed to bid on the project must be
13-13 available at the time of the first advertisement and the
13-14 advertisement shall state the location at which these documents may
13-15 be reviewed.
13-16 (b) A [construction] contract may cover all the work to be
13-17 provided for [by] the district or the various elements of the work
13-18 may be segregated for the purpose of receiving bids and awarding
13-19 contracts. A contract may provide that the work will be completed
13-20 [constructed] in stages over a period of years.
13-21 (c) A [construction] contract may provide for the payment of
13-22 a total sum that is the completed cost of the work or may be based
13-23 on bids to cover cost of units of the various elements entering
13-24 into the work as estimated and approximately specified by the
13-25 district's engineers, or a contract may be let and awarded in any
13-26 other form or composite of forms and to any responsible person or
13-27 persons that, in the board's judgment, will be most advantageous to
14-1 the district and result in the best and most economical completion
14-2 of the district's proposed plants, improvements, facilities, works,
14-3 equipment, and appliances.
14-4 (d) For [construction] contracts for $25,000 or more, the
14-5 board shall advertise the letting of the contract, including the
14-6 general conditions, time, and place of opening of sealed bids. The
14-7 notice shall be published in one or more newspapers circulated in
14-8 each county in which part of the district is located. If one
14-9 newspaper meets both of these requirements, publication in such
14-10 newspaper is sufficient. If there are more than four counties in
14-11 the district, notice may be published in any newspaper with general
14-12 circulation in the district. The notice shall be published once a
14-13 week for three consecutive weeks before the date that the bids are
14-14 opened, and the first publication shall be not later than the 21st
14-15 day before the date of the opening of the sealed bids.
14-16 (e) For [construction] contracts for $15,000 or more but
14-17 less than $25,000, the board shall solicit written competitive bids
14-18 on uniform written specifications from at least three bidders.
14-19 (f) For [construction] contracts of less than $15,000, the
14-20 board is not required to advertise or seek competitive bids.
14-21 (g) The board may not subdivide work to avoid the
14-22 advertising requirements specified in this section.
14-23 (h) The board may not accept bids that include substituted
14-24 items unless the substituted items were included in the original
14-25 bid proposal and all bidders had the opportunity to bid on the
14-26 substituted items or unless notice is given to all bidders at a
14-27 mandatory pre-bid conference.
15-1 (i) Change orders to contracts may be issued only as a
15-2 result of unanticipated conditions encountered during construction,
15-3 repair, or renovation or changes in regulatory criteria or to
15-4 facilitate project coordination with other political entities.
15-5 (j) The board is not required to advertise or seek
15-6 competitive bids for the repair of district facilities by the
15-7 district's operator if the cost of the repair is less than or equal
15-8 to the cost of complying with the advertising requirements of this
15-9 section [The provisions of this subchapter do not apply to
15-10 contracts for personal or professional services or for a utility
15-11 service operator or to contracts made by a district engaged in the
15-12 distribution and sale of electric energy to the public.]
15-13 [(k) The provisions of this subchapter do not apply to high
15-14 technology procurements. The provisions of Sections 252.021(a) and
15-15 252.042, Local Government Code, shall apply to high technology
15-16 procurements].
15-17 SECTION 21. Subchapter I, Chapter 49, Water Code, is amended
15-18 by adding Section 49.278 to read as follows:
15-19 Sec. 49.278. NONAPPLICABILITY. (a) This subchapter does
15-20 not apply to:
15-21 (1) equipment, materials, or machinery purchased by
15-22 the district at an auction that is open to the public;
15-23 (2) contracts for personal or professional services or
15-24 for a utility service operator;
15-25 (3) contracts made by a district engaged in the
15-26 distribution and sale of electric energy to the public; or
15-27 (4) high technology procurements.
16-1 (b) Sections 252.021(a) and 252.042, Local Government Code,
16-2 apply to high technology procurements.
16-3 SECTION 22. Section 49.301, Water Code, is amended by
16-4 amending Subsection (b) and adding Subsection (g) to read as
16-5 follows:
16-6 (b) If the district has bonds, notes, or other obligations
16-7 outstanding or bonds payable in whole or in part from taxes that
16-8 have been voted but are unissued, the board shall [may] require the
16-9 petitioner or petitioners to assume their share of the outstanding
16-10 bonds, notes, or other obligations and the voted but unissued tax
16-11 bonds of the district and authorize the board to levy a tax on
16-12 their property in each year while any of the bonds, notes, or other
16-13 obligations payable in whole or in part from taxation are
16-14 outstanding to pay their share of the indebtedness.
16-15 (g) An order issued by the board under this section is not
16-16 required to include all of the land described in the petition if
16-17 the board determines that a change in the description is necessary
16-18 or desirable.
16-19 SECTION 23. Section 49.302(f), Water Code, is amended to
16-20 read as follows:
16-21 (f) A copy of the order annexing land to the district,
16-22 [signed by a majority of the members of the board and] attested by
16-23 the secretary of the board, shall be filed and recorded in the deed
16-24 records of the county or counties in which the district is located
16-25 if the land is finally annexed to the district.
16-26 SECTION 24. Section 49.351, Water Code, is amended by adding
16-27 Subsection (k) to read as follows:
17-1 (k) In this section, "fire-fighting activities" means all of
17-2 the customary and usual activities of a fire department, including
17-3 fire suppression, fire prevention, training, safety education,
17-4 maintenance, communications, medical emergency services,
17-5 photography, and administration.
17-6 SECTION 25. Section 49.455(b), Water Code, is amended to
17-7 read as follows:
17-8 (b) The information form filed by a district under this
17-9 section shall include:
17-10 (1) the name of the district;
17-11 (2) the complete and accurate legal description of the
17-12 boundaries of the district;
17-13 (3) the most recent rate of district taxes on property
17-14 located in the district;
17-15 (4) the total amount of bonds that have been approved
17-16 by the voters and which may be issued by the district (excluding
17-17 refunding bonds and any bonds or portion of bonds payable solely
17-18 from revenues received or expected to be received pursuant to a
17-19 contract with a governmental entity);
17-20 (5) the aggregate initial principal amount of all
17-21 bonds of the district payable in whole or part from taxes
17-22 (excluding refunding bonds and any bonds or portion of bonds
17-23 payable solely from revenues received or expected to be received
17-24 pursuant to a contract with a governmental entity) that have been
17-25 previously issued [and remain outstanding];
17-26 (6) whether a standby fee is imposed by the district
17-27 and, if so, the amount of the standby fee;
18-1 (7) the date on which the election to confirm the
18-2 creation of the district was held if such was required;
18-3 (8) a statement of the functions performed or to be
18-4 performed by the district; and
18-5 (9) the particular form of Notice to Purchasers
18-6 required by Section 49.452 to be furnished by a seller to a
18-7 purchaser of real property in that district completed by the
18-8 district with all information required to be furnished by the
18-9 district.
18-10 If a district has not yet levied taxes, a statement to such
18-11 effect together with the district's most recent projected rate of
18-12 debt service tax shall be substituted for Subdivisions (3) and (4).
18-13 SECTION 26. Section 51.028, Water Code, is amended by
18-14 amending the heading and Subsection (a) to read as follows:
18-15 Sec. 51.028. MULTI-COUNTY DISTRICT: NOTICE AND [OF]
18-16 HEARING. (a) When a petition is filed, the commission shall give
18-17 notice of an application [a hearing] in the manner provided in
18-18 Section 49.011 and may conduct a hearing on the application if the
18-19 commission determines that a hearing is necessary under that
18-20 section [51.018 of this code].
18-21 SECTION 27. Subchapter B, Chapter 53, Water Code, is amended
18-22 by adding Section 53.020 to read as follows:
18-23 Sec. 53.020. TEMPORARY SUPERVISORS; QUALIFICATIONS. (a) If
18-24 the commissioners court grants a petition presented under Section
18-25 53.013, the court shall appoint five temporary supervisors to serve
18-26 on the board of the district until permanent supervisors are
18-27 elected.
19-1 (b) A temporary supervisor appointed under Subsection (a)
19-2 shall execute a bond as required under Section 49.055 and take the
19-3 oath of office.
19-4 (c) After the commissioners court appoints five temporary
19-5 supervisors under Subsection (a), the temporary supervisors shall
19-6 meet and organize.
19-7 SECTION 28. Section 54.018, Water Code, is amended to read
19-8 as follows:
19-9 Sec. 54.018. NOTICE AND HEARING ON DISTRICT CREATION
19-10 [ESTABLISHING A DATE OF HEARING]. If a petition is filed under
19-11 Section 54.014, the commission shall give notice of an application
19-12 as required by Section 49.011 and may conduct a hearing on the
19-13 application if the commission determines that a hearing is
19-14 necessary under Section 49.011 [On the filing of a petition, the
19-15 commission or someone authorized by the commission, shall fix a
19-16 date, time, and place at which the petition shall be heard and
19-17 shall issue notice of the date, time, and place of hearing. The
19-18 notice shall inform all persons of their right to appear and
19-19 present evidence and testify for or against the allegations in the
19-20 petition, the form of the petition, the necessity and feasibility
19-21 of the district's project, and the benefits to accrue].
19-22 SECTION 29. Section 54.020(a), Water Code, is amended to
19-23 read as follows:
19-24 (a) If the commission determines that a hearing is necessary
19-25 under Section 49.011, the commission shall conduct a hearing and
19-26 accept evidence [At the hearing, the commission shall examine the
19-27 petition to ascertain its sufficiency, and any person interested
20-1 may appear before the commission in person or by attorney and offer
20-2 testimony] on the sufficiency of the petition and whether the
20-3 project is feasible and practicable and is necessary and would be a
20-4 benefit to all or any part of the land proposed to be included in
20-5 the district.
20-6 SECTION 30. Sections 54.021(a) and (e), Water Code, are
20-7 amended to read as follows:
20-8 (a) If the commission finds [After the hearing of the
20-9 petition if it is found] that the petition conforms to the
20-10 requirements of Section 54.015 [of this code] and that the project
20-11 is feasible and practicable and is necessary and would be a benefit
20-12 to the land to be included in the district, the commission shall so
20-13 find by its order and grant the petition.
20-14 (e) A copy of the order of the commission granting or
20-15 denying a petition shall be mailed to each city having
20-16 extraterritorial jurisdiction in the county or counties in which
20-17 the district is located who requested a hearing under Section
20-18 49.011 [notice of hearings as provided in Section 54.019 of this
20-19 code].
20-20 SECTION 31. Section 54.102, Water Code, is amended to read
20-21 as follows:
20-22 Sec. 54.102. QUALIFICATIONS FOR DIRECTORS. To be qualified
20-23 to serve as a director, a person shall be at least 18 [21] years
20-24 old, a resident citizen of the State of Texas, and either own land
20-25 subject to taxation in the district or be a qualified voter within
20-26 the district.
20-27 SECTION 32. Section 54.774(b), Water Code, is amended to
21-1 read as follows:
21-2 (b) Except as provided in Subsection (a) [of this section],
21-3 a district may acquire recreational facilities and obtain funds to
21-4 develop and maintain them in the same manner as authorized
21-5 elsewhere in this code for the acquisition, development, and
21-6 maintenance of other facilities of the district. Without limiting
21-7 the foregoing, a district may charge fees directly to the users of
21-8 recreational facilities and to water and wastewater customers of
21-9 the district, regardless of whether the customers are located
21-10 within or outside the boundaries of the district, to pay for all or
21-11 part of the cost of their development and maintenance. For
21-12 purposes of enforcing payment of an unpaid fee charged under this
21-13 subsection, the district may:
21-14 (1) seek legal restitution of the unpaid fee; and
21-15 (2) refuse use of a recreational facility to the
21-16 person who owes the unpaid fee, except that the district may not
21-17 discontinue use of other facilities or services.
21-18 SECTION 33. Section 54.802(b), Water Code, is amended to
21-19 read as follows:
21-20 (b) The board shall adopt a proposed plan for improvements
21-21 in the defined area or to serve the designated property in the
21-22 manner provided by Section 49.106 [Sections 54.506-54.507 of this
21-23 code].
21-24 SECTION 34. Section 54.806(a), Water Code, is amended to
21-25 read as follows:
21-26 (a) Before the adopted plans may become effective, they must
21-27 be approved by the voters in the defined area or within the
22-1 boundaries of the designated property. The election shall be
22-2 conducted as provided by Section 49.106 [this chapter] for an
22-3 election to authorize the issuance of bonds.
22-4 SECTION 35. Section 55.040, Water Code, is amended to read
22-5 as follows:
22-6 Sec. 55.040. MULTI-COUNTY DISTRICT: PETITION. Creation of a
22-7 district composed of land in two or more counties may be initiated
22-8 by presenting a petition to the commission signed by the owners of
22-9 more than half the land in the proposed district or by 50 qualified
22-10 property taxpaying electors of the territory of the proposed
22-11 district. The petition shall describe the boundaries of the
22-12 proposed district and[,] request an order on [a hearing to
22-13 determine] the advisability of creating the district[,] and
22-14 [request] an order for an election.
22-15 SECTION 36. Section 55.042, Water Code, is amended to read
22-16 as follows:
22-17 Sec. 55.042. MULTI-COUNTY DISTRICT: HEARING. If the
22-18 commission determines that a hearing is necessary under Section
22-19 49.011, the commission shall conduct a hearing and [At the
22-20 hearing,] any person whose land would be affected by creation of
22-21 the district may appear and support or oppose creation of the
22-22 proposed district, and may offer competent testimony to show that
22-23 the district would or would not serve a beneficial purpose, be
22-24 practicable, or accomplish the purposes intended.
22-25 SECTION 37. Section 58.027, Water Code, is amended by
22-26 amending the heading and Subsection (a) to read as follows:
22-27 Sec. 58.027. MULTICOUNTY DISTRICT: CONSIDERATION [HEARING]
23-1 BY COMMISSION. (a) The commission shall have exclusive
23-2 jurisdiction and power to consider [hear] and determine all
23-3 petitions for creation of a district that will include land or
23-4 property located in two or more counties.
23-5 SECTION 38. Section 58.028, Water Code, is amended to read
23-6 as follows:
23-7 Sec. 58.028. MULTICOUNTY DISTRICT: NOTICE AND [OF] HEARING
23-8 ON DISTRICT CREATION. [(a)] When a petition is filed, the
23-9 commission shall give notice of an application [a hearing] in the
23-10 manner provided in Section 49.011 and may conduct a hearing on the
23-11 application if the commission determines that a hearing is
23-12 necessary under that section [58.018 of this code].
23-13 [(b) The notice shall be posted at the courthouse door, on
23-14 the bulletin board used for posting legal notices, in each county
23-15 in which the district may be located.]
23-16 [(c) The notice shall be published in one or more newspapers
23-17 with general circulation in the area of the proposed district.]
23-18 SECTION 39. Section 58.030, Water Code, is amended to read
23-19 as follows:
23-20 Sec. 58.030. MULTICOUNTY DISTRICT: CONSIDERATION BY [HEARING
23-21 OF] COMMISSION; PROCEDURE. (a) The commission shall [hear,]
23-22 consider[,] and determine on the issues a petition filed under
23-23 Section 58.028 [of this code].
23-24 (b) The [At the hearing of the petition, the] commission
23-25 shall be governed by the provisions of Section 58.021 [of this
23-26 code].
23-27 SECTION 40. Section 59.007(a), Water Code, is amended to
24-1 read as follows:
24-2 (a) If [after the hearing of the petition] the commission
24-3 finds after considering the petition that the petition conforms to
24-4 the requirements of this chapter and that the creation of the
24-5 district would be of benefit to the territory to be included in the
24-6 district, the commission shall issue an order granting the petition
24-7 for creation. If the commission finds that part of the territory
24-8 included in the proposed district will not benefit from the
24-9 creation of the district, the commission shall exclude that
24-10 territory from the proposed district and redefine the proposed
24-11 district's boundaries accordingly.
24-12 SECTION 41. Section 65.018, Water Code, is amended to read
24-13 as follows:
24-14 Sec. 65.018. NOTICE AND HEARING ON DISTRICT CREATION
24-15 [ESTABLISHING DATE OF HEARING]. If a resolution is filed under
24-16 Section 65.014, the commission shall give notice of an application
24-17 as required by Section 49.011 and may conduct a hearing on the
24-18 application if the commission determines that a hearing is
24-19 necessary under Section 49.011 [(a) On the filing of a resolution,
24-20 the commission shall set a date, time, and place at which the
24-21 resolution will be heard and shall issue notice of the date, time,
24-22 and place of hearing.]
24-23 [(b) The notice shall inform all persons of their right to
24-24 appear and present evidence and testify for or against the material
24-25 included in the resolution, the form of the resolution, the
24-26 necessity and feasibility of the water supply corporation's request
24-27 for conversion, and the benefits to accrue from conversion].
25-1 SECTION 42. Section 65.020(a), Water Code, is amended to
25-2 read as follows:
25-3 (a) If the commission determines that a hearing is necessary
25-4 under Section 49.011, the commission shall conduct a hearing and
25-5 accept evidence [At the hearing, the commission shall examine the
25-6 resolution to determine if it is sufficient, and any person
25-7 interested may appear before the commission in person or by
25-8 attorney and offer testimony] on the sufficiency of the resolution
25-9 and whether or not the request for conversion is feasible and
25-10 practicable and is necessary and would be a benefit to all or any
25-11 part of the land proposed to be included in the district.
25-12 SECTION 43. Section 65.021(a), Water Code, is amended to
25-13 read as follows:
25-14 (a) If [After the hearing on the resolution, if] the
25-15 commission finds that the resolution conforms to the requirements
25-16 of Section 65.015 [of this code] and that the request for
25-17 conversion is feasible and practicable and is necessary and would
25-18 be a benefit to the land proposed to be included in the district,
25-19 the commission shall make these findings in an order and shall
25-20 authorize the creation of the district on approval at the
25-21 confirmation and directors' election called and held under this
25-22 subchapter.
25-23 SECTION 44. Section 65.103, Water Code, is amended by
25-24 amending Subsection (c) and adding Subsection (d) to read as
25-25 follows:
25-26 (c) The method for determining the initial terms for each of
25-27 the directors constituting the initial board shall be determined by
26-1 the temporary directors, and the terms must be clearly stated on
26-2 the ballot for the confirmation and directors' election. [At
26-3 subsequent elections in each following year in which there is an
26-4 election, the election must be held on the same uniform election
26-5 date as the confirmation and directors' election, and the terms of
26-6 the directors being elected must be stated on the ballot.]
26-7 (d) Notwithstanding Sections 41.001 and 41.003, Election
26-8 Code, the board may hold an election to elect directors on any date
26-9 determined by the board. The terms of directors must be stated on
26-10 the ballot.
26-11 SECTION 45. Section 66.018, Water Code, is amended to read
26-12 as follows:
26-13 Sec. 66.018. NOTICE AND HEARING ON DISTRICT CREATION. If a
26-14 petition is filed under Section 66.014, the commission shall give
26-15 notice of an application as required by Section 49.011 and may
26-16 conduct a hearing if the commission determines that a hearing is
26-17 necessary under Section 49.011 [(a) On receiving a petition to
26-18 create a district, the commission or a person designated by it
26-19 shall set a date for a hearing on the petition.]
26-20 [(b) After a date is set for the hearing, the executive
26-21 director shall give notice of the hearing and the commission shall
26-22 hold the hearing and issue an order stating its final decision in
26-23 the manner provided by Chapter 2001, Government Code. In addition
26-24 to other notice required by law, the executive director shall
26-25 publish notice in a newspaper with general circulation in the area
26-26 of the proposed district once a week for two consecutive weeks, the
26-27 first publication to be made at least 30 days before the date set
27-1 for the hearing].
27-2 SECTION 46. Section 66.019(a), Water Code, is amended to
27-3 read as follows:
27-4 (a) After considering the petition [the hearing], the
27-5 commission shall grant the petition if it finds that:
27-6 (1) the petition conforms to the requirements of
27-7 Sections 66.014 and 66.015 [of this code]; and
27-8 (2) the projects proposed by the district are feasible
27-9 and practicable, are necessary, and will be a benefit to land
27-10 included in the district.
27-11 SECTION 47. Section 6.003(b), Civil Practice and Remedies
27-12 Code, is amended to read as follows:
27-13 (b) The following are exempt from the appeal bond
27-14 requirements:
27-15 (1) a water improvement district, a water control and
27-16 improvement district, an irrigation district, a conservation and
27-17 reclamation district, or a water control and preservation district
27-18 organized under state law;
27-19 (2) a levee improvement district organized under state
27-20 law; [and]
27-21 (3) a drainage district organized under state law; and
27-22 (4) an entity created under Section 52, Article III,
27-23 or Section 59, Article XVI, Texas Constitution.
27-24 SECTION 48. Section 16.061, Civil Practice and Remedies
27-25 Code, is amended to read as follows:
27-26 Sec. 16.061. RIGHTS NOT BARRED. (a) A right of action of
27-27 this state or a political subdivision of the state, including a
28-1 county, an incorporated city or town, a navigation district, a
28-2 municipal utility district, a port authority, an entity acting
28-3 under Chapter 341, Acts of the 57th Legislature, Regular Session,
28-4 1961 (Article 1187f, Vernon's Texas Civil Statutes), [or] a school
28-5 district, or an entity created under Section 52, Article III, or
28-6 Section 59, Article XVI, Texas Constitution, is not barred by any
28-7 of the following sections: 16.001-16.004, 16.006, 16.007,
28-8 16.021-16.028, 16.030-16.032, 16.035-16.037, 16.051, 16.062,
28-9 16.063, 16.065-16.067, 16.070, 16.071, 31.006, or 71.021.
28-10 (b) In this section:
28-11 (1) "Navigation district" means a navigation district
28-12 organized under Section 52, Article III, [Section 52,] or Section
28-13 59, Article XVI, [Section 59, of the] Texas Constitution.
28-14 (2) "Port authority" has the meaning assigned by
28-15 Section 60.402, Water Code.
28-16 (3) "Municipal utility district" means a municipal
28-17 utility district created under Section 52, Article III, or Section
28-18 59, Article XVI, Texas Constitution.
28-19 SECTION 49. Section 41.031(a), Election Code, is amended to
28-20 read as follows:
28-21 (a) Except as provided by Section 41.033, the [The] polls
28-22 shall be opened at 7 a.m. for voting and shall be closed at 7 p.m.
28-23 SECTION 50. Subchapter B, Chapter 41, Election Code, is
28-24 amended by adding Section 41.033 to read as follows:
28-25 Sec. 41.033. EARLY CLOSING OF CERTAIN POLLS.
28-26 Notwithstanding Section 41.031(a), an entity created under Section
28-27 52, Article III, or Section 59, Article XVI, Texas Constitution,
29-1 may close the polls before 7 p.m. in an election held by the entity
29-2 if:
29-3 (1) the entity has fewer than 50 qualified voters; and
29-4 (2) the number of ballots cast in the election equals
29-5 the number of qualified voters.
29-6 SECTION 51. Section 140.006, Local Government Code, is
29-7 amended by amending Subsection (a) and adding Subsection (e) to
29-8 read as follows:
29-9 (a) Except as provided by Subsections [Subsection] (c) and
29-10 (e), the presiding officer of a governing body shall submit a
29-11 financial statement prepared under Section 140.005 to a newspaper
29-12 in each county in which the district or any part of the district is
29-13 located.
29-14 (e) This section does not apply to an entity created under
29-15 Section 52, Article III, or Section 59, Article XVI, Texas
29-16 Constitution.
29-17 SECTION 52. Section 191.0525(d), Natural Resources Code, is
29-18 amended to read as follows:
29-19 (d) A project for a county, [or] municipality, or an entity
29-20 created under Section 52, Article III, or Section 59, Article XVI,
29-21 Texas Constitution, requires advance project review only if the
29-22 project affects a cumulative area larger than five acres or
29-23 disturbs a cumulative area of more than 5,000 cubic yards,
29-24 whichever measure is triggered first, or if the project is inside a
29-25 designated historic district or recorded archeological site.
29-26 SECTION 53. Section 1.04(3), Tax Code, is amended to read as
29-27 follows:
30-1 (3) "Improvement" means:
30-2 (A) a building, structure, fixture, or fence
30-3 erected on or affixed to land; [or]
30-4 (B) a transportable structure that is designed
30-5 to be occupied for residential or business purposes, whether or not
30-6 it is affixed to land, if the owner of the structure owns the land
30-7 on which it is located, unless the structure is unoccupied and held
30-8 for sale or normally is located at a particular place only
30-9 temporarily; or
30-10 (C) for purposes of an entity created under
30-11 Section 52, Article III, or Section 59, Article XVI, Texas
30-12 Constitution:
30-13 (i) subdivision of land by plat;
30-14 (ii) installation of water, sewer, or drainage
30-15 lines; or
30-16 (iii) paving of undeveloped land.
30-17 SECTION 54. Section 26.012, Tax Code, is amended by amending
30-18 Subdivisions (8) and (17) to read as follows:
30-19 (8) "Debt service" means the total amount expended or
30-20 to be expended by a taxing unit from property tax revenues to pay
30-21 principal of and interest on debts or other payments required by
30-22 contract to secure the debts and, if the unit is created under
30-23 Section 52, Article III, or Section 59, Article XVI, Texas
30-24 Constitution, payments on debts that the unit anticipates incurring
30-25 in the next calendar year.
30-26 (17) "New property value" means:
30-27 (A) the total taxable value of property added to
31-1 the appraisal roll in the current year by annexation and
31-2 improvements listed on the appraisal roll that were made after
31-3 January 1 of the preceding tax year, including personal property
31-4 located in new improvements that was brought into the unit after
31-5 January 1 of the preceding tax year; [and]
31-6 (B) property value that is included in the
31-7 current total value for the tax year succeeding a tax year in which
31-8 any portion of the value of the property was excluded from the
31-9 total value because of the application of a tax abatement agreement
31-10 to all or a portion of the property, less the value of the property
31-11 that was included in the total value for the preceding tax year;
31-12 and
31-13 (C) for purposes of an entity created under
31-14 Section 52, Article III, or Section 59, Article XVI, Texas
31-15 Constitution, property value that is included in the current total
31-16 value for the tax year succeeding a tax year in which the following
31-17 occurs:
31-18 (i) subdivision of land by plat;
31-19 (ii) installation of water, sewer, or drainage
31-20 lines; or
31-21 (iii) paving of undeveloped land.
31-22 SECTION 55. Section 26.04(e), Tax Code, is amended to read
31-23 as follows:
31-24 (e) By August 7 or as soon thereafter as practicable, the
31-25 designated officer or employee shall submit the rates to the
31-26 governing body. He shall deliver by mail to each property owner in
31-27 the unit or publish in a newspaper in the form prescribed by the
32-1 comptroller:
32-2 (1) the effective tax rate, the rollback tax rate, and
32-3 an explanation of how they were calculated;
32-4 (2) the estimated amount of interest and sinking fund
32-5 balances and the estimated amount of maintenance and operation or
32-6 general fund balances remaining at the end of the current fiscal
32-7 year that are not encumbered with or by corresponding existing debt
32-8 obligation, except that for a school district, estimated funds
32-9 necessary for the operation of the district prior to the receipt of
32-10 the first state education aid payment in the succeeding school year
32-11 shall be subtracted from the estimated fund balances;
32-12 (3) a schedule of the unit's debt obligations showing:
32-13 (A) the amount of principal and interest that
32-14 will be paid to service the unit's debts in the next year from
32-15 property tax revenue, including payments of lawfully incurred
32-16 contractual obligations providing security for the payment of the
32-17 principal of and interest on bonds and other evidences of
32-18 indebtedness issued on behalf of the unit by another political
32-19 subdivision and, if the unit is created under Section 52, Article
32-20 III, or Section 59, Article XVI, Texas Constitution, payments on
32-21 debts that the unit anticipates to incur in the next calendar year;
32-22 (B) the amount by which taxes imposed for debt
32-23 are to be increased because of the unit's anticipated collection
32-24 rate; and
32-25 (C) the total of the amounts listed in
32-26 Paragraphs (A)-(B), less any amount collected in excess of the
32-27 previous year's anticipated collections certified as provided in
33-1 Subsection (b) [of this section];
33-2 (4) the amount of additional sales and use tax revenue
33-3 anticipated in calculations under Section 26.041 [of this code];
33-4 (5) in the year that a taxing unit calculates an
33-5 adjustment under Section 26.04(k) or (l) [of this code], the unit
33-6 shall publish a schedule that includes the following elements:
33-7 (A) the name of the unit discontinuing the
33-8 department, function, or activity;
33-9 (B) the amount of property tax revenue spent by
33-10 the unit listed under Paragraph (A) of this subsection to operate
33-11 the discontinued department, function, or activity in the 12 months
33-12 preceding the month in which the calculations required by this
33-13 chapter are made; and
33-14 (C) the name of the unit that operates a
33-15 distinct department, function, or activity in all or a majority of
33-16 the territory of a taxing unit that has discontinued operating the
33-17 distinct department, function, or activity; and
33-18 (6) in the year following the year in which a taxing
33-19 unit raised its rollback rate as required by Section 26.04(l) [of
33-20 this code], the taxing unit shall publish a schedule that includes
33-21 the following elements:
33-22 (A) the amount of property tax revenue spent by
33-23 the unit to operate the department, function, or activity for which
33-24 the taxing unit raised the rollback rate as required by Section
33-25 26.04(l) [of this code] for the 12 months preceding the month in
33-26 which the calculations required by this chapter are made; and
33-27 (B) the amount published by the unit in the
34-1 preceding tax year under Section 26.04(e)(5)(B) [of this code].
34-2 SECTION 56. Sections 50.501, 51.030, 51.409, 53.071, 54.019,
34-3 54.511, 54.515, 55.041, and 65.019, Water Code, and Section
34-4 42.042(e), Local Government Code, are repealed.
34-5 SECTION 57. The importance of this legislation and the
34-6 crowded condition of the calendars in both houses create an
34-7 emergency and an imperative public necessity that the
34-8 constitutional rule requiring bills to be read on three several
34-9 days in each house be suspended, and this rule is hereby suspended,
34-10 and that this Act take effect and be in force from and after its
34-11 passage, and it is so enacted.