By Wentworth                                    S.B. No. 1878

      75R192 KKA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to authorizing certain municipal utility districts to

 1-3     repair and maintain streets and to issue bonds and use bond

 1-4     proceeds for that purpose.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter D, Chapter 54, Water Code, is amended

 1-7     by adding Section 54.242 to read as follows:

 1-8           Sec. 54.242.  STREET REPAIR OR MAINTENANCE.  A district

 1-9     created by general law or special act of the legislature in

1-10     existence for at least 10 years may repair or maintain a street

1-11     within the district as provided by Section 54.522.

1-12           SECTION 2.  Subchapter F, Chapter 54, Water Code, is amended

1-13     by adding Section 54.522 to read as follows:

1-14           Sec. 54.522.  BONDS FOR STREET REPAIR OR MAINTENANCE.  (a)

1-15     The legislature finds that the condition of streets affects:

1-16                 (1)  the control, storage, preservation, and

1-17     distribution of the state's storm and flood waters;

1-18                 (2)  the control, abatement, or change of any shortage

1-19     or harmful excess of water; and

1-20                 (3)  a municipal utility district's ability to

1-21     accomplish its purposes.

1-22           (b)  It is the policy of the state to authorize a municipal

1-23     utility district in certain circumstances to take action necessary

1-24     to prevent the condition of a street within the district from

 2-1     adversely affecting the control, storage, preservation, and

 2-2     distribution of the state's storm and flood waters, adversely

 2-3     affecting the control, abatement, or change of any shortage or

 2-4     harmful excess of water, or otherwise impeding a district's ability

 2-5     to accomplish its purposes.

 2-6           (c)  A district created by general law or special act of the

 2-7     legislature in existence for at least 10 years may:

 2-8                 (1)  issue bonds for the purpose of repairing or

 2-9     maintaining streets within the district if the bonds are authorized

2-10     by a majority vote of the resident electors of the district voting

2-11     in an election called and held for that purpose; or

2-12                 (2)  use proceeds from issued bonds for the purpose of

2-13     repairing or maintaining streets within the district if:

2-14                       (A)  the district obtains approval of the

2-15     bondholders, if approval is required by the terms of the bonds; and

2-16                       (B)  the use of the proceeds for street repair or

2-17     maintenance is authorized by a majority vote of the resident

2-18     electors of the district voting in an election called and held for

2-19     that purpose.

2-20           (d)  An election required by this section must be held on the

2-21     uniform election date in November authorized by Section 41.001,

2-22     Election Code.  Notwithstanding Section 41.003, Election Code, an

2-23     election under this section may be held on the date of the general

2-24     election for state and county officers.

2-25           SECTION 3.  The importance of this legislation and the

2-26     crowded condition of the calendars in both houses create an

2-27     emergency and an imperative public necessity that the

 3-1     constitutional rule requiring bills to be read on three several

 3-2     days in each house be suspended, and this rule is hereby suspended,

 3-3     and that this Act take effect and be in force from and after its

 3-4     passage, and it is so enacted.