By: Armbrister S.B. No. 1865
97S0888/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the operation, administration, and financing of utility
1-2 districts.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (e), Section 49.057, Water Code, is
1-5 amended to read as follows:
1-6 (e) The board shall require an officer, employee, or
1-7 consultant who routinely collects, pays, or handles any funds of
1-8 the district, such as the bookkeeper, financial advisor, or system
1-9 operator, to furnish good and sufficient bond, payable to the
1-10 district, in an amount determined by the board to be sufficient to
1-11 safeguard the district. The board may require a bond from other
1-12 consultants as the board deems necessary. The bond shall be
1-13 conditioned on the faithful performance of that person's duties and
1-14 on accounting for all funds and property of the district. Such
1-15 bond shall be signed or endorsed by a surety company authorized to
1-16 do business in the state.
1-17 SECTION 2. Section 49.103, Water Code, is amended by
1-18 amending Subsection (e) and adding Subsection (g) to read as
1-19 follows:
1-20 (e) Section 49.002 notwithstanding, in all areas of conflict
1-21 the provisions of Subsections (a) and [Subsection] (b) shall take
1-22 precedence over all prior statutory enactments.
1-23 (g) The districts that are required by this subsection to
2-1 convert to four-year terms or change election dates may extend the
2-2 terms of directors currently in office to the next appropriate
2-3 election date in an even-numbered year. The directors in districts
2-4 that may have nonstaggered terms as a result of compliance with
2-5 prior requirements may draw lots to determine which directors shall
2-6 serve the longer terms necessary to convert to four-year staggered
2-7 terms.
2-8 SECTION 3. Section 49.106, Water Code, is amended by adding
2-9 Subsection (d) to read as follows:
2-10 (d) A bond election may be called as a result of an
2-11 agreement to annex additional land into the district.
2-12 SECTION 4. Subsection (h), Section 49.181, Water Code, is
2-13 amended to read as follows:
2-14 (h) This section does not apply to a district if:
2-15 (1) the district's boundaries include one entire
2-16 county;
2-17 (2) the district was created by a special Act of the
2-18 legislature and:
2-19 (A) the district is located entirely within one
2-20 county;
2-21 (B) entirely within one or more home-rule
2-22 municipalities;
2-23 (C) the total taxable value of the real property
2-24 and improvements to the real property zoned by one or more
2-25 home-rule municipalities for residential purposes and located
3-1 within the district does not exceed 25 percent of the total taxable
3-2 value of all taxable property in the district, as shown by the most
3-3 recent certified appraisal tax roll prepared by the appraisal
3-4 district for the county; and
3-5 (D) the district was not required by law to
3-6 obtain commission approval of its bonds before the effective date
3-7 of this section;
3-8 (3) the district is a special water authority; or
3-9 (4) the district is governed by a board of directors
3-10 appointed in whole or in part by the governor, a state agency, or
3-11 the governing body or chief elected official of a municipality or
3-12 county and does not provide or propose to provide water, [and]
3-13 sewer, drainage, reclamation, or flood control services to
3-14 residential retail customers as its principal function.
3-15 SECTION 5. Subchapter F, Chapter 49, Water Code, is amended
3-16 by adding Section 49.186 to read as follows:
3-17 Sec. 49.186. OBLIGATIONS, LEGAL INVESTMENT; SECURITY FOR
3-18 FUNDS. All bonds, notes, and other obligations issued by a
3-19 district shall be legal and authorized investments for all banks,
3-20 trust companies, building and loan associations, savings and loan
3-21 associations, insurance companies of all kinds and types,
3-22 fiduciaries, and trustees, and for all interest and sinking funds
3-23 and other public funds of the State of Texas, and all agencies,
3-24 subdivisions, and instrumentalities of the state including all
3-25 counties, cities, towns, villages, school districts, and all other
4-1 kinds and types of districts, public agencies, and bodies politic.
4-2 A district's bonds, notes, and other obligations shall be eligible
4-3 and lawful security for all deposits of public funds of the State
4-4 of Texas, and all agencies, subdivisions, and instrumentalities of
4-5 the state, including all counties, cities, towns, villages, school
4-6 districts, and all other kinds and types of districts, public
4-7 agencies, and bodies politic, to the extent of the market value of
4-8 the bonds, notes, and other obligations when accompanied by any
4-9 unmatured interest coupons attached to them.
4-10 SECTION 6. Section 49.196, Water Code, is amended by adding
4-11 Subsection (c) to read as follows:
4-12 (c) No conservation and reclamation district or entity
4-13 organized under Section 52, Article III, or Section 59, Article
4-14 XVI, Texas Constitution, shall be subject to the requirements of
4-15 Section 140.006, Local Government Code.
4-16 SECTION 7. Subsection (a), Section 49.198, Water Code, is
4-17 amended to read as follows:
4-18 (a) A district [that is not collecting taxes] may elect to
4-19 file annual financial reports with the executive director in lieu
4-20 of the district's compliance with Section 49.191 provided:
4-21 (1) the district had no bonds or other long-term (more
4-22 than one year) liabilities outstanding during the fiscal period;
4-23 (2) the district did not have gross receipts from
4-24 operations, loans, taxes, or contributions in excess of $100,000
4-25 during the fiscal period; and
5-1 (3) the district's cash and temporary investments were
5-2 not in excess of $100,000 at any time during the fiscal period.
5-3 SECTION 8. Subsection (a), Section 49.218, Water Code, is
5-4 amended to read as follows:
5-5 (a) A district or a water supply corporation may acquire
5-6 land, any interest in land, materials, waste grounds, easements,
5-7 rights-of-way, equipment, contract or permit rights or interests,
5-8 and other property, real or personal, considered necessary for the
5-9 purpose of accomplishing any one or more of the district's or water
5-10 supply corporation's purposes provided in this code or in any other
5-11 law.
5-12 SECTION 9. Subsection (a), Section 49.226, Water Code, is
5-13 amended to read as follows:
5-14 (a) Any personal property valued at more than $300, or any
5-15 [Any] land or[,] interest in land[, or personal property] owned by
5-16 the district which is found by the board to be surplus and is not
5-17 needed by the district may be sold under order of the board either
5-18 by public or private sale, or the land, interest in land, or
5-19 personal property may be exchanged for other land, interest in
5-20 land, or personal property needed by the district. Except as
5-21 provided in Subsection (b), land, interest in land, or personal
5-22 property must be exchanged for like fair market value, which value
5-23 may be determined by the district.
5-24 SECTION 10. The heading of Subchapter I, Chapter 49, Water
5-25 Code, is amended to read as follows:
6-1 SUBCHAPTER I. [CONSTRUCTION] CONTRACTS FOR MATERIALS,
6-2 MACHINERY, CONSTRUCTION, ETC.
6-3 SECTION 11. Section 49.273, Water Code, is amended by
6-4 amending the section heading and Subsections (a), (d), (e), (f),
6-5 and (g) and adding Subsection (l) to read as follows:
6-6 Sec. 49.273. [CONSTRUCTION] CONTRACT AWARD. (a) The board
6-7 shall contract for the purchase of equipment, materials, machinery,
6-8 and construction, repair, or renovation of district facilities in
6-9 accordance with this section. The bidding documents, plans,
6-10 specifications, and other data needed to bid on the project must be
6-11 available at the time of the first advertisement and the
6-12 advertisement shall state the location at which these documents may
6-13 be reviewed.
6-14 (d) For [construction] contracts for $25,000 or more, the
6-15 board shall advertise the letting of the contract, including the
6-16 general conditions, time, and place of opening of sealed bids. The
6-17 notice shall be published in one or more newspapers circulated in
6-18 each county in which part of the district is located. If one
6-19 newspaper meets both of these requirements, publication in such
6-20 newspaper is sufficient. If there are more than four counties in
6-21 the district, notice may be published in any newspaper with general
6-22 circulation in the district. The notice shall be published once a
6-23 week for three consecutive weeks before the date that the bids are
6-24 opened, and the first publication shall be not later than the 21st
6-25 day before the date of the opening of the sealed bids.
7-1 (e) For [construction] contracts for $15,000 or more but
7-2 less than $25,000, the board shall solicit written competitive bids
7-3 on uniform written specifications from at least three bidders.
7-4 (f) For [construction] contracts of less than $15,000, the
7-5 board is not required to advertise or seek competitive bids.
7-6 (g) The board may not subdivide work to avoid the
7-7 advertising requirements specified in this section. Repair of
7-8 district facilities by the utility service operator is not subject
7-9 to competitive bidding unless the costs of a single repair exceed
7-10 the advertising requirements specified in this section.
7-11 (l) The provisions of this subchapter do not apply to
7-12 equipment, materials, or machinery purchased at an auction open to
7-13 the public.
7-14 SECTION 12. Section 49.301, Water Code, is amended by
7-15 amending Subsection (b) and adding Subsection (g) to read as
7-16 follows:
7-17 (b) If the district has bonds, notes, or other obligations
7-18 outstanding or bonds payable in whole or in part from taxes that
7-19 have been voted but are unissued, the board shall [may] require the
7-20 petitioner or petitioners to assume their share of the outstanding
7-21 bonds, notes, or other obligations and the voted but unissued tax
7-22 bonds of the district and authorize the board to levy a tax on
7-23 their property in each year while any of the bonds, notes, or other
7-24 obligations payable in whole or in part from taxation are
7-25 outstanding to pay their share of the indebtedness.
8-1 (g) The order adding the proposed territory to the district
8-2 need not include all of the land described in the petition if at
8-3 the hearing a modification or change is found necessary or
8-4 desirable by the board.
8-5 SECTION 13. Subsection (f), Section 49.302, Water Code, is
8-6 amended to read as follows:
8-7 (f) A copy of the order annexing land to the district,
8-8 [signed by a majority of the members of the board and] attested by
8-9 the secretary of the board, shall be filed and recorded in the deed
8-10 records of the county or counties in which the district is located
8-11 if the land is finally annexed to the district.
8-12 SECTION 14. Subsection (b), Section 49.455, Water Code, is
8-13 amended to read as follows:
8-14 (b) The information form filed by a district under this
8-15 section shall include:
8-16 (1) the name of the district;
8-17 (2) the complete and accurate legal description of the
8-18 boundaries of the district;
8-19 (3) the most recent rate of district taxes on property
8-20 located in the district;
8-21 (4) the total amount of bonds that have been approved
8-22 by the voters and which may be issued by the district (excluding
8-23 refunding bonds and any bonds or portion of bonds payable solely
8-24 from revenues received or expected to be received pursuant to a
8-25 contract with a governmental entity);
9-1 (5) the aggregate initial principal amount of all
9-2 bonds of the district payable in whole or in part from taxes
9-3 (excluding refunding bonds and any bonds or portion of bonds
9-4 payable solely from revenues received or expected to be received
9-5 pursuant to a contract with a governmental entity) that have been
9-6 previously issued [and remain outstanding];
9-7 (6) whether a standby fee is imposed by the district
9-8 and, if so, the amount of the standby fee;
9-9 (7) the date on which the election to confirm the
9-10 creation of the district was held if such was required;
9-11 (8) a statement of the functions performed or to be
9-12 performed by the district; and
9-13 (9) the particular form of Notice to Purchasers
9-14 required by Section 49.452 to be furnished by a seller to a
9-15 purchaser of real property in that district completed by the
9-16 district with all information required to be furnished by the
9-17 district.
9-18 If a district has not yet levied taxes, a statement to such
9-19 effect together with the district's most recent projected rate of
9-20 debt service tax shall be substituted for Subdivisions (3) and (4).
9-21 SECTION 15. Subsection (b), Section 51.411, Water Code, is
9-22 amended to read as follows:
9-23 (b) In the order, the board shall estimate the total amount
9-24 of money needed to cover:
9-25 (1) the cost of organization of the district;
10-1 (2) incidental expenses;
10-2 (3) the cost of investigation and making plans;
10-3 (4) the engineer's work and other incidental expenses;
10-4 (5) the cost of retirement of preliminary bonds;
10-5 (6) the cost of issuing and selling bonds;
10-6 (7) the estimated discount on the bonds;
10-7 (8) the cost of operation of the district for the
10-8 period of construction of the plant and improvements stated in the
10-9 engineer's report;
10-10 (9) an amount to pay interest on the bonds during the
10-11 period stated in the engineer's report, which shall be not more
10-12 than three years from the time the bonds are sold;
10-13 (10) any additional cost or expense made necessary by
10-14 any change or modification made in the proposed work by the
10-15 district; and
10-16 (11) the payment of interest on or the creation of a
10-17 reasonable reserve to pay interest on bonds and notes of the
10-18 district for a period of time not to exceed three years from the
10-19 date of the bonds and notes of the district [the items listed in
10-20 Section 51.409 of this code].
10-21 SECTION 16. Section 54.102, Water Code, is amended to read
10-22 as follows:
10-23 Sec. 54.102. QUALIFICATIONS FOR DIRECTORS. To be qualified
10-24 to serve as a director, a person shall be at least 18 [21] years
10-25 old, a resident citizen of the State of Texas, and either own land
11-1 subject to taxation in the district or be a qualified voter within
11-2 the district.
11-3 SECTION 17. Subsection (b), Section 54.802, Water Code, is
11-4 amended to read as follows:
11-5 (b) The board shall adopt a proposed plan for improvements
11-6 in the defined area or to serve the designated property in the
11-7 manner provided by Section 49.106 [Sections 54.506-54.507] of this
11-8 code.
11-9 SECTION 18. Subsection (a), Section 54.806, Water Code, is
11-10 amended to read as follows:
11-11 (a) Before the adopted plans may become effective, they must
11-12 be approved by the voters in the defined area or within the
11-13 boundaries of the designated property. The election shall be
11-14 conducted as provided by Section 49.106 of this code [this chapter]
11-15 for an election to authorize the issuance of bonds.
11-16 SECTION 19. Subsection (b), Section 59.072, Water Code, is
11-17 amended to read as follows:
11-18 (b) Except as specifically provided by this chapter, Chapter
11-19 49 and Sections 54.018, 54.019(a), (b), (c), and (d), 54.020,
11-20 54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208, 54.502
11-21 through 54.505, 54.507(b) and (c), 54.510 through 54.512, 54.514,
11-22 [54.515,] 54.518, 54.520, 54.521, 54.601 through 54.604, and 54.735
11-23 through 54.737 apply under this chapter.
11-24 SECTION 20. Subsection (e), Section 42.042, Local Government
11-25 Code, is amended to read as follows:
12-1 (e) If the consent to initiate proceedings to create the
12-2 political subdivision is obtained, the consent will be valid until
12-3 withdrawn by the governing body [proceedings must be initiated
12-4 within six months after the date of the consent and must be finally
12-5 completed within 18 months after the date of the consent. Failure
12-6 to comply with either time requirement terminates the consent].
12-7 SECTION 21. Subchapter B, Chapter 41, Election Code, is
12-8 amended by adding Section 41.033 to read as follows:
12-9 Sec. 41.033. EARLY CLOSING OF POLLS FOR ELECTIONS INVOLVING
12-10 FEWER THAN 50 QUALIFIED VOTERS. In an election involving fewer
12-11 than 50 qualified voters, notwithstanding any other provision of
12-12 law, the presiding judge present at the polling place may determine
12-13 to close the polls at any time that the number of ballots cast
12-14 equals the number of qualified voters eligible to vote in the
12-15 election.
12-16 SECTION 22. Subsection (b), Section 6.003, Civil Practice
12-17 and Remedies Code, is amended to read as follows:
12-18 (b) The following are exempt from the appeal bond
12-19 requirements:
12-20 (1) a water improvement district, a water control and
12-21 improvement district, a conservation and reclamation district, [or]
12-22 a water control and preservation district organized under state
12-23 law, or any entity organized under Section 52, Article III, or
12-24 Section 59, Article XVI, Texas Constitution;
12-25 (2) a levee improvement district organized under state
13-1 law; and
13-2 (3) a drainage district organized under state law.
13-3 SECTION 23. Subsection (a), Section 16.061, Civil Practice
13-4 and Remedies Code, is amended to read as follows:
13-5 (a) A right of action of this state or any political
13-6 subdivision thereof, including but not limited to a county, an
13-7 incorporated city or town, a navigation district, a municipal
13-8 utility district, a conservation and reclamation district, a port
13-9 authority, an entity acting under Chapter 341, Acts of the 57th
13-10 Legislature, Regular Session, 1961 (Article 1187f, Vernon's Texas
13-11 Civil Statutes), [or] a school district, or any entity organized
13-12 under Section 52, Article III, or Section 59, Article XVI, Texas
13-13 Constitution, is not barred by any of the following
13-14 sections: 16.001-16.004, 16.006, 16.007, 16.021-16.028,
13-15 16.030-16.032, 16.035-16.037, 16.051, 16.062, 16.063,
13-16 16.065-16.067, 16.070, 16.071, 31.006, or 71.021.
13-17 SECTION 24. Subdivision (8), Section 26.012, Tax Code, is
13-18 amended to read as follows:
13-19 (8) "Debt service" means the total amount expended or
13-20 to be expended by a taxing unit from property tax revenues to pay
13-21 principal of and interest on debts, [or] other payments required by
13-22 contract to secure the debts, or payments required on debts
13-23 anticipated to be incurred in the following calendar year.
13-24 SECTION 25. Subsection (e), Section 26.04, Tax Code, is
13-25 amended to read as follows:
14-1 (e) By August 7 or as soon thereafter as practicable, the
14-2 designated officer or employee shall submit the rates to the
14-3 governing body. He shall deliver by mail to each property owner in
14-4 the unit or publish in a newspaper in the form prescribed by the
14-5 comptroller:
14-6 (1) the effective tax rate, the rollback tax rate, and
14-7 an explanation of how they were calculated;
14-8 (2) the estimated amount of interest and sinking fund
14-9 balances and the estimated amount of maintenance and operation or
14-10 general fund balances remaining at the end of the current fiscal
14-11 year that are not encumbered with or by corresponding existing debt
14-12 obligation, except that for a school district, estimated funds
14-13 necessary for the operation of the district prior to the receipt of
14-14 the first state education aid payment in the succeeding school year
14-15 shall be subtracted from the estimated fund balances;
14-16 (3) a schedule of the unit's debt obligations showing:
14-17 (A) the amount of principal and interest that
14-18 will be paid to service the unit's debts in the next year from
14-19 property tax revenue, including payments of lawfully incurred
14-20 contractual obligations providing security for the payment of the
14-21 principal of and interest on bonds, payments required on debts
14-22 anticipated to be incurred in the following calendar year, and
14-23 other evidences of indebtedness issued on behalf of the unit by
14-24 another political subdivision;
14-25 (B) the amount by which taxes imposed for debt
15-1 are to be increased because of the unit's anticipated collection
15-2 rate; and
15-3 (C) the total of the amounts listed in
15-4 Paragraphs (A)-(B), less any amount collected in excess of the
15-5 previous year's anticipated collections certified as provided in
15-6 Subsection (b) of this section; and
15-7 (4) the amount of additional sales and use tax revenue
15-8 anticipated in calculations under Section 26.041 of this code;[.]
15-9 (5) in the year that a taxing unit calculates an
15-10 adjustment under Section 26.04(k) or (l) of this code, the unit
15-11 shall publish a schedule that includes the following elements:
15-12 (A) the name of the unit discontinuing the
15-13 department, function, or activity;
15-14 (B) the amount of property tax revenue spent by
15-15 the unit listed under Paragraph (A) of this subsection to operate
15-16 the discontinued department, function, or activity in the 12 months
15-17 preceding the month in which the calculations required by this
15-18 chapter are made; and
15-19 (C) the name of the unit that operates a
15-20 distinct department, function, or activity in all or a majority of
15-21 the territory of a taxing unit that has discontinued operating the
15-22 distinct department, function, or activity; and
15-23 (6) in the year following the year in which a taxing
15-24 unit raised its rollback rate as required by Section 26.04(l) of
15-25 this code, the taxing unit shall publish a schedule that includes
16-1 the following elements:
16-2 (A) the amount of property tax revenue spent by
16-3 the unit to operate the department, function, or activity for which
16-4 the taxing unit raised the rollback rate as required by Section
16-5 26.04(l) of this code for the 12 months preceding the month in
16-6 which the calculations required by this chapter are made; and
16-7 (B) the amount published by the unit in the
16-8 preceding tax year under Section 26.04(e)(5)(B) of this code.
16-9 SECTION 26. Subsection (d), Section 191.0525, Natural
16-10 Resources Code, is amended to read as follows:
16-11 (d) A project for a county, [or] municipality, or other
16-12 political subdivision requires advance project review only if the
16-13 project affects a cumulative area larger than five acres or
16-14 disturbs a cumulative area of more than 5,000 cubic yards,
16-15 whichever measure is triggered first, or if the project is inside a
16-16 designated historic district or recorded archeological site.
16-17 SECTION 27. Sections 51.409, 53.071, 54.511, and 54.515,
16-18 Water Code, are repealed.
16-19 SECTION 28. The importance of this legislation and the
16-20 crowded condition of the calendars in both houses create an
16-21 emergency and an imperative public necessity that the
16-22 constitutional rule requiring bills to be read on three several
16-23 days in each house be suspended, and this rule is hereby suspended,
16-24 and that this Act take effect and be in force from and after its
16-25 passage, and it is so enacted.