1-1 By: Armbrister S.B. No. 1865
1-2 (In the Senate - Filed March 14, 1997; March 24, 1997, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 8, 1997, reported favorably by the following vote:
1-5 Yeas 11, Nays 0; April 8, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the operation, administration, and financing of utility
1-9 districts.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsection (e), Section 49.057, Water Code, is
1-12 amended to read as follows:
1-13 (e) The board shall require an officer, employee, or
1-14 consultant who routinely collects, pays, or handles any funds of
1-15 the district, such as the bookkeeper, financial advisor, or system
1-16 operator, to furnish good and sufficient bond, payable to the
1-17 district, in an amount determined by the board to be sufficient to
1-18 safeguard the district. The board may require a bond from other
1-19 consultants as the board deems necessary. The bond shall be
1-20 conditioned on the faithful performance of that person's duties and
1-21 on accounting for all funds and property of the district. Such
1-22 bond shall be signed or endorsed by a surety company authorized to
1-23 do business in the state.
1-24 SECTION 2. Section 49.103, Water Code, is amended by
1-25 amending Subsection (e) and adding Subsection (g) to read as
1-26 follows:
1-27 (e) Section 49.002 notwithstanding, in all areas of conflict
1-28 the provisions of Subsections (a) and [Subsection] (b) shall take
1-29 precedence over all prior statutory enactments.
1-30 (g) The districts that are required by this section to
1-31 convert to four-year terms or change election dates may extend the
1-32 terms of directors currently in office to the next appropriate
1-33 election date in an even-numbered year. The directors in districts
1-34 that may have nonstaggered terms as a result of compliance with
1-35 prior requirements may draw lots to determine which directors shall
1-36 serve the longer terms necessary to convert to four-year staggered
1-37 terms.
1-38 SECTION 3. Section 49.106, Water Code, is amended by adding
1-39 Subsection (d) to read as follows:
1-40 (d) A bond election may be called as a result of an
1-41 agreement to annex additional land into the district.
1-42 SECTION 4. Subsection (h), Section 49.181, Water Code, is
1-43 amended to read as follows:
1-44 (h) This section does not apply to a district if:
1-45 (1) the district's boundaries include one entire
1-46 county;
1-47 (2) the district was created by a special Act of the
1-48 legislature and:
1-49 (A) the district is located entirely within one
1-50 county;
1-51 (B) entirely within one or more home-rule
1-52 municipalities;
1-53 (C) the total taxable value of the real property
1-54 and improvements to the real property zoned by one or more
1-55 home-rule municipalities for residential purposes and located
1-56 within the district does not exceed 25 percent of the total taxable
1-57 value of all taxable property in the district, as shown by the most
1-58 recent certified appraisal tax roll prepared by the appraisal
1-59 district for the county; and
1-60 (D) the district was not required by law to
1-61 obtain commission approval of its bonds before the effective date
1-62 of this section;
1-63 (3) the district is a special water authority; or
1-64 (4) the district is governed by a board of directors
2-1 appointed in whole or in part by the governor, a state agency, or
2-2 the governing body or chief elected official of a municipality or
2-3 county and does not provide or propose to provide water, [and]
2-4 sewer, drainage, reclamation, or flood control services to
2-5 residential retail customers as its principal function.
2-6 SECTION 5. Subchapter F, Chapter 49, Water Code, is amended
2-7 by adding Section 49.186 to read as follows:
2-8 Sec. 49.186. OBLIGATIONS, LEGAL INVESTMENT; SECURITY FOR
2-9 FUNDS. All bonds, notes, and other obligations issued by a
2-10 district shall be legal and authorized investments for all banks,
2-11 trust companies, building and loan associations, savings and loan
2-12 associations, insurance companies of all kinds and types,
2-13 fiduciaries, and trustees, and for all interest and sinking funds
2-14 and other public funds of the State of Texas, and all agencies,
2-15 subdivisions, and instrumentalities of the state including all
2-16 counties, cities, towns, villages, school districts, and all other
2-17 kinds and types of districts, public agencies, and bodies politic.
2-18 A district's bonds, notes, and other obligations shall be eligible
2-19 and lawful security for all deposits of public funds of the State
2-20 of Texas, and all agencies, subdivisions, and instrumentalities of
2-21 the state, including all counties, cities, towns, villages, school
2-22 districts, and all other kinds and types of districts, public
2-23 agencies, and bodies politic, to the extent of the market value of
2-24 the bonds, notes, and other obligations when accompanied by any
2-25 unmatured interest coupons attached to them.
2-26 SECTION 6. Section 49.196, Water Code, is amended by adding
2-27 Subsection (c) to read as follows:
2-28 (c) No conservation and reclamation district or entity
2-29 organized under Section 52, Article III, or Section 59, Article
2-30 XVI, Texas Constitution, shall be subject to the requirements of
2-31 Section 140.006, Local Government Code.
2-32 SECTION 7. Subsection (a), Section 49.198, Water Code, is
2-33 amended to read as follows:
2-34 (a) A district [that is not collecting taxes] may elect to
2-35 file annual financial reports with the executive director in lieu
2-36 of the district's compliance with Section 49.191 provided:
2-37 (1) the district had no bonds or other long-term (more
2-38 than one year) liabilities outstanding during the fiscal period;
2-39 (2) the district did not have gross receipts from
2-40 operations, loans, taxes, or contributions in excess of $100,000
2-41 during the fiscal period; and
2-42 (3) the district's cash and temporary investments were
2-43 not in excess of $100,000 at any time during the fiscal period.
2-44 SECTION 8. Subsection (a), Section 49.218, Water Code, is
2-45 amended to read as follows:
2-46 (a) A district or a water supply corporation may acquire
2-47 land, any interest in land, materials, waste grounds, easements,
2-48 rights-of-way, equipment, contract or permit rights or interests,
2-49 and other property, real or personal, considered necessary for the
2-50 purpose of accomplishing any one or more of the district's or water
2-51 supply corporation's purposes provided in this code or in any other
2-52 law.
2-53 SECTION 9. Subsection (a), Section 49.226, Water Code, is
2-54 amended to read as follows:
2-55 (a) Any personal property valued at more than $300, or any
2-56 [Any] land or[,] interest in land[, or personal property] owned by
2-57 the district which is found by the board to be surplus and is not
2-58 needed by the district may be sold under order of the board either
2-59 by public or private sale, or the land, interest in land, or
2-60 personal property may be exchanged for other land, interest in
2-61 land, or personal property needed by the district. Except as
2-62 provided in Subsection (b), land, interest in land, or personal
2-63 property must be exchanged for like fair market value, which value
2-64 may be determined by the district.
2-65 SECTION 10. The heading of Subchapter I, Chapter 49, Water
2-66 Code, is amended to read as follows:
2-67 SUBCHAPTER I. [CONSTRUCTION] CONTRACTS FOR MATERIALS,
2-68 MACHINERY, CONSTRUCTION, ETC.
2-69 SECTION 11. Section 49.273, Water Code, is amended by
3-1 amending the section heading and Subsections (a), (d), (e), (f),
3-2 and (g) and adding Subsection (l) to read as follows:
3-3 Sec. 49.273. [CONSTRUCTION] CONTRACT AWARD. (a) The board
3-4 shall contract for the purchase of equipment, materials, machinery,
3-5 and construction, repair, or renovation of district facilities in
3-6 accordance with this section. The bidding documents, plans,
3-7 specifications, and other data needed to bid on the project must be
3-8 available at the time of the first advertisement and the
3-9 advertisement shall state the location at which these documents may
3-10 be reviewed.
3-11 (d) For [construction] contracts for $25,000 or more, the
3-12 board shall advertise the letting of the contract, including the
3-13 general conditions, time, and place of opening of sealed bids. The
3-14 notice shall be published in one or more newspapers circulated in
3-15 each county in which part of the district is located. If one
3-16 newspaper meets both of these requirements, publication in such
3-17 newspaper is sufficient. If there are more than four counties in
3-18 the district, notice may be published in any newspaper with general
3-19 circulation in the district. The notice shall be published once a
3-20 week for three consecutive weeks before the date that the bids are
3-21 opened, and the first publication shall be not later than the 21st
3-22 day before the date of the opening of the sealed bids.
3-23 (e) For [construction] contracts for $15,000 or more but
3-24 less than $25,000, the board shall solicit written competitive bids
3-25 on uniform written specifications from at least three bidders.
3-26 (f) For [construction] contracts of less than $15,000, the
3-27 board is not required to advertise or seek competitive bids.
3-28 (g) The board may not subdivide work to avoid the
3-29 advertising requirements specified in this section. Repair of
3-30 district facilities by the utility service operator is not subject
3-31 to competitive bidding unless the costs of a single repair exceed
3-32 the advertising requirements specified in this section.
3-33 (l) The provisions of this subchapter do not apply to
3-34 equipment, materials, or machinery purchased at an auction open to
3-35 the public.
3-36 SECTION 12. Section 49.301, Water Code, is amended by
3-37 amending Subsection (b) and adding Subsection (g) to read as
3-38 follows:
3-39 (b) If the district has bonds, notes, or other obligations
3-40 outstanding or bonds payable in whole or in part from taxes that
3-41 have been voted but are unissued, the board shall [may] require the
3-42 petitioner or petitioners to assume their share of the outstanding
3-43 bonds, notes, or other obligations and the voted but unissued tax
3-44 bonds of the district and authorize the board to levy a tax on
3-45 their property in each year while any of the bonds, notes, or other
3-46 obligations payable in whole or in part from taxation are
3-47 outstanding to pay their share of the indebtedness.
3-48 (g) The order adding the proposed territory to the district
3-49 need not include all of the land described in the petition if at
3-50 the hearing a modification or change is found necessary or
3-51 desirable by the board.
3-52 SECTION 13. Subsection (f), Section 49.302, Water Code, is
3-53 amended to read as follows:
3-54 (f) A copy of the order annexing land to the district,
3-55 [signed by a majority of the members of the board and] attested by
3-56 the secretary of the board, shall be filed and recorded in the deed
3-57 records of the county or counties in which the district is located
3-58 if the land is finally annexed to the district.
3-59 SECTION 14. Subsection (b), Section 49.455, Water Code, is
3-60 amended to read as follows:
3-61 (b) The information form filed by a district under this
3-62 section shall include:
3-63 (1) the name of the district;
3-64 (2) the complete and accurate legal description of the
3-65 boundaries of the district;
3-66 (3) the most recent rate of district taxes on property
3-67 located in the district;
3-68 (4) the total amount of bonds that have been approved
3-69 by the voters and which may be issued by the district (excluding
4-1 refunding bonds and any bonds or portion of bonds payable solely
4-2 from revenues received or expected to be received pursuant to a
4-3 contract with a governmental entity);
4-4 (5) the aggregate initial principal amount of all
4-5 bonds of the district payable in whole or in part from taxes
4-6 (excluding refunding bonds and any bonds or portion of bonds
4-7 payable solely from revenues received or expected to be received
4-8 pursuant to a contract with a governmental entity) that have been
4-9 previously issued [and remain outstanding];
4-10 (6) whether a standby fee is imposed by the district
4-11 and, if so, the amount of the standby fee;
4-12 (7) the date on which the election to confirm the
4-13 creation of the district was held if such was required;
4-14 (8) a statement of the functions performed or to be
4-15 performed by the district; and
4-16 (9) the particular form of Notice to Purchasers
4-17 required by Section 49.452 to be furnished by a seller to a
4-18 purchaser of real property in that district completed by the
4-19 district with all information required to be furnished by the
4-20 district.
4-21 If a district has not yet levied taxes, a statement to such
4-22 effect together with the district's most recent projected rate of
4-23 debt service tax shall be substituted for Subdivisions (3) and (4).
4-24 SECTION 15. Subsection (b), Section 51.411, Water Code, is
4-25 amended to read as follows:
4-26 (b) In the order, the board shall estimate the total amount
4-27 of money needed to cover:
4-28 (1) the cost of organization of the district;
4-29 (2) incidental expenses;
4-30 (3) the cost of investigation and making plans;
4-31 (4) the engineer's work and other incidental expenses;
4-32 (5) the cost of retirement of preliminary bonds;
4-33 (6) the cost of issuing and selling bonds;
4-34 (7) the estimated discount on the bonds;
4-35 (8) the cost of operation of the district for the
4-36 period of construction of the plant and improvements stated in the
4-37 engineer's report;
4-38 (9) an amount to pay interest on the bonds during the
4-39 period stated in the engineer's report, which shall be not more
4-40 than three years from the time the bonds are sold;
4-41 (10) any additional cost or expense made necessary by
4-42 any change or modification made in the proposed work by the
4-43 district; and
4-44 (11) the payment of interest on or the creation of a
4-45 reasonable reserve to pay interest on bonds and notes of the
4-46 district for a period of time not to exceed three years from the
4-47 date of the bonds and notes of the district [the items listed in
4-48 Section 51.409 of this code].
4-49 SECTION 16. Section 54.102, Water Code, is amended to read
4-50 as follows:
4-51 Sec. 54.102. QUALIFICATIONS FOR DIRECTORS. To be qualified
4-52 to serve as a director, a person shall be at least 18 [21] years
4-53 old, a resident citizen of the State of Texas, and either own land
4-54 subject to taxation in the district or be a qualified voter within
4-55 the district.
4-56 SECTION 17. Subsection (b), Section 54.802, Water Code, is
4-57 amended to read as follows:
4-58 (b) The board shall adopt a proposed plan for improvements
4-59 in the defined area or to serve the designated property in the
4-60 manner provided by Section 49.106 [Sections 54.506-54.507] of this
4-61 code.
4-62 SECTION 18. Subsection (a), Section 54.806, Water Code, is
4-63 amended to read as follows:
4-64 (a) Before the adopted plans may become effective, they must
4-65 be approved by the voters in the defined area or within the
4-66 boundaries of the designated property. The election shall be
4-67 conducted as provided by Section 49.106 of this code [this chapter]
4-68 for an election to authorize the issuance of bonds.
4-69 SECTION 19. Subsection (b), Section 59.072, Water Code, is
5-1 amended to read as follows:
5-2 (b) Except as specifically provided by this chapter, Chapter
5-3 49 and Sections 54.018, 54.019(a), (b), (c), and (d), 54.020,
5-4 54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208, 54.502
5-5 through 54.505, 54.507(b) and (c), 54.510 through 54.512, 54.514,
5-6 [54.515,] 54.518, 54.520, 54.521, 54.601 through 54.604, and 54.735
5-7 through 54.737 apply under this chapter.
5-8 SECTION 20. Subsection (e), Section 42.042, Local Government
5-9 Code, is amended to read as follows:
5-10 (e) If the consent to initiate proceedings to create the
5-11 political subdivision is obtained, the consent will be valid until
5-12 withdrawn by the governing body [proceedings must be initiated
5-13 within six months after the date of the consent and must be finally
5-14 completed within 18 months after the date of the consent. Failure
5-15 to comply with either time requirement terminates the consent].
5-16 SECTION 21. Subchapter B, Chapter 41, Election Code, is
5-17 amended by adding Section 41.033 to read as follows:
5-18 Sec. 41.033. EARLY CLOSING OF POLLS FOR ELECTIONS INVOLVING
5-19 FEWER THAN 50 QUALIFIED VOTERS. In an election involving fewer
5-20 than 50 qualified voters, notwithstanding any other provision of
5-21 law, the presiding judge present at the polling place may determine
5-22 to close the polls at any time that the number of ballots cast
5-23 equals the number of qualified voters eligible to vote in the
5-24 election.
5-25 SECTION 22. Subsection (b), Section 6.003, Civil Practice
5-26 and Remedies Code, is amended to read as follows:
5-27 (b) The following are exempt from the appeal bond
5-28 requirements:
5-29 (1) a water improvement district, a water control and
5-30 improvement district, a conservation and reclamation district, [or]
5-31 a water control and preservation district organized under state
5-32 law, or any entity organized under Section 52, Article III, or
5-33 Section 59, Article XVI, Texas Constitution;
5-34 (2) a levee improvement district organized under state
5-35 law; and
5-36 (3) a drainage district organized under state law.
5-37 SECTION 23. Subsection (a), Section 16.061, Civil Practice
5-38 and Remedies Code, is amended to read as follows:
5-39 (a) A right of action of this state or any political
5-40 subdivision thereof, including but not limited to a county, an
5-41 incorporated city or town, a navigation district, a municipal
5-42 utility district, a conservation and reclamation district, a port
5-43 authority, an entity acting under Chapter 341, Acts of the 57th
5-44 Legislature, Regular Session, 1961 (Article 1187f, Vernon's Texas
5-45 Civil Statutes), [or] a school district, or any entity organized
5-46 under Section 52, Article III, or Section 59, Article XVI, Texas
5-47 Constitution, is not barred by any of the following
5-48 sections: 16.001-16.004, 16.006, 16.007, 16.021-16.028,
5-49 16.030-16.032, 16.035-16.037, 16.051, 16.062, 16.063,
5-50 16.065-16.067, 16.070, 16.071, 31.006, or 71.021.
5-51 SECTION 24. Subdivision (8), Section 26.012, Tax Code, is
5-52 amended to read as follows:
5-53 (8) "Debt service" means the total amount expended or
5-54 to be expended by a taxing unit from property tax revenues to pay
5-55 principal of and interest on debts, [or] other payments required by
5-56 contract to secure the debts, or payments required on debts
5-57 anticipated to be incurred in the following calendar year.
5-58 SECTION 25. Subsection (e), Section 26.04, Tax Code, is
5-59 amended to read as follows:
5-60 (e) By August 7 or as soon thereafter as practicable, the
5-61 designated officer or employee shall submit the rates to the
5-62 governing body. He shall deliver by mail to each property owner in
5-63 the unit or publish in a newspaper in the form prescribed by the
5-64 comptroller:
5-65 (1) the effective tax rate, the rollback tax rate, and
5-66 an explanation of how they were calculated;
5-67 (2) the estimated amount of interest and sinking fund
5-68 balances and the estimated amount of maintenance and operation or
5-69 general fund balances remaining at the end of the current fiscal
6-1 year that are not encumbered with or by corresponding existing debt
6-2 obligation, except that for a school district, estimated funds
6-3 necessary for the operation of the district prior to the receipt of
6-4 the first state education aid payment in the succeeding school year
6-5 shall be subtracted from the estimated fund balances;
6-6 (3) a schedule of the unit's debt obligations showing:
6-7 (A) the amount of principal and interest that
6-8 will be paid to service the unit's debts in the next year from
6-9 property tax revenue, including payments of lawfully incurred
6-10 contractual obligations providing security for the payment of the
6-11 principal of and interest on bonds, payments required on debts
6-12 anticipated to be incurred in the following calendar year, and
6-13 other evidences of indebtedness issued on behalf of the unit by
6-14 another political subdivision;
6-15 (B) the amount by which taxes imposed for debt
6-16 are to be increased because of the unit's anticipated collection
6-17 rate; and
6-18 (C) the total of the amounts listed in
6-19 Paragraphs (A)-(B), less any amount collected in excess of the
6-20 previous year's anticipated collections certified as provided in
6-21 Subsection (b) of this section; and
6-22 (4) the amount of additional sales and use tax revenue
6-23 anticipated in calculations under Section 26.041 of this code;[.]
6-24 (5) in the year that a taxing unit calculates an
6-25 adjustment under Section 26.04(k) or (l) of this code, the unit
6-26 shall publish a schedule that includes the following elements:
6-27 (A) the name of the unit discontinuing the
6-28 department, function, or activity;
6-29 (B) the amount of property tax revenue spent by
6-30 the unit listed under Paragraph (A) of this subsection to operate
6-31 the discontinued department, function, or activity in the 12 months
6-32 preceding the month in which the calculations required by this
6-33 chapter are made; and
6-34 (C) the name of the unit that operates a
6-35 distinct department, function, or activity in all or a majority of
6-36 the territory of a taxing unit that has discontinued operating the
6-37 distinct department, function, or activity; and
6-38 (6) in the year following the year in which a taxing
6-39 unit raised its rollback rate as required by Section 26.04(l) of
6-40 this code, the taxing unit shall publish a schedule that includes
6-41 the following elements:
6-42 (A) the amount of property tax revenue spent by
6-43 the unit to operate the department, function, or activity for which
6-44 the taxing unit raised the rollback rate as required by Section
6-45 26.04(l) of this code for the 12 months preceding the month in
6-46 which the calculations required by this chapter are made; and
6-47 (B) the amount published by the unit in the
6-48 preceding tax year under Section 26.04(e)(5)(B) of this code.
6-49 SECTION 26. Subsection (d), Section 191.0525, Natural
6-50 Resources Code, is amended to read as follows:
6-51 (d) A project for a county, [or] municipality, or other
6-52 political subdivision requires advance project review only if the
6-53 project affects a cumulative area larger than five acres or
6-54 disturbs a cumulative area of more than 5,000 cubic yards,
6-55 whichever measure is triggered first, or if the project is inside a
6-56 designated historic district or recorded archeological site.
6-57 SECTION 27. Sections 51.409, 53.071, 54.511, and 54.515,
6-58 Water Code, are repealed.
6-59 SECTION 28. The importance of this legislation and the
6-60 crowded condition of the calendars in both houses create an
6-61 emergency and an imperative public necessity that the
6-62 constitutional rule requiring bills to be read on three several
6-63 days in each house be suspended, and this rule is hereby suspended,
6-64 and that this Act take effect and be in force from and after its
6-65 passage, and it is so enacted.
6-66 * * * * *