75R13864 MI-F                          

         By Brown                                              S.B. No. 1888

         Substitute the following for S.B. No. 1888:

         By Counts                                         C.S.S.B. No. 1888

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the repeal of the authority to abolish certain

 1-3     conservation and reclamation districts that become part of more

 1-4     than one municipality.

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

 1-6           SECTION 1.  Section 43.076(a), Local Government Code, is

 1-7     amended to read as follows:

 1-8           (a)  This section applies to a municipality that contains, as

 1-9     a result of the annexation by or the incorporation of the

1-10     municipality, any part of the area in a water control and

1-11     improvement district, fresh water supply district, or municipal

1-12     utility district organized for the primary purpose of providing

1-13     municipal functions such as the supplying of fresh water for

1-14     domestic or commercial uses or the furnishing of sanitary sewer

1-15     service, if:

1-16                 (1)  the balance of the area in the district is located

1-17     in one or more other municipalities;  [or]

1-18                 (2)  the district is not created by a special act of

1-19     the legislature and the balance of the area is located in one or

1-20     more other municipalities and in an unincorporated area; or

1-21                 (3)  the district is a conservation and reclamation

1-22     district of more than 10,000 acres that provides water and sanitary

1-23     sewer service to households and parts of which are located in two

1-24     or more municipalities, one of which has a population of more than

 2-1     1.6 million.

 2-2           SECTION 2.  Subchapter D, Chapter 43, Local Government Code,

 2-3     is amended by adding Section 43.0761 to read as follows:

 2-4           Sec. 43.0761.  PROVISION OF WATER AND SANITARY SEWER UTILITY

 2-5     SERVICE.  (a)  A district existing on September 1, 1997, that,

 2-6     within 10 years after the date of its creation, has not provided

 2-7     water and sanitary sewer utility service from its facilities to all

 2-8     household users in its territory shall:

 2-9                 (1)  provide water and sanitary sewer utility service

2-10     from its facilities to all household users in its territory not

2-11     later than September 1, 1998; or

2-12                 (2)  for that part of the district for which the

2-13     district does not provide water and sanitary sewer utility service,

2-14     and for which a municipality does provide those services, provide

2-15     for periodic payments, as described by Subsection (b), by the

2-16     district to the municipality that provides the services.

2-17           (b)  Payments made under Subsection (a)(2) are operation and

2-18     maintenance expenses of the district and shall be made at least

2-19     every three months.  The total annual amount of the payments may

2-20     not exceed the lesser of:

2-21                 (1)  the total annual cost to the municipality of

2-22     providing the water and sanitary sewer utility service, including

2-23     both capital and operation and maintenance costs and expenses; or

2-24                 (2)  the total annual amount of maintenance and

2-25     operation taxes and debt service or bond taxes paid to the district

2-26     by the owners of taxable property within the district that receives

2-27     water and sanitary sewer utility service from the municipality.

 3-1           (c)  For purposes of Subsection (b)(2), the value of taxable

 3-2     property that receives the utility service shall be determined by

 3-3     the most recent certified tax roll provided by the central

 3-4     appraisal district in which the property is located.  The amount of

 3-5     the taxes shall be determined using rates from the district's most

 3-6     recent tax levies.

 3-7           (d)  A district that, on January 1, 1997, was providing water

 3-8     and sanitary sewer utility service to households outside the

 3-9     territory of the district may not discontinue that service and

3-10     shall continue to provide that service on the basis of rates

3-11     established by the district in accordance with Chapter 13, Water

3-12     Code.

3-13           (e)  In this section, "district" means a conservation and

3-14     reclamation district of more than 10,000 acres that provides water

3-15     and sanitary sewer utility service to households and parts of which

3-16     are located in two or more municipalities, one of which has a

3-17     population of more than 1.6 million.

3-18           SECTION 3.  Sections 43.077 and 43.078, Local Government

3-19     Code, are repealed.

3-20           SECTION 4.  This Act takes effect September 1, 1997.

3-21           SECTION 5.  The importance of this legislation and the

3-22     crowded condition of the calendars in both houses create an

3-23     emergency and an imperative public necessity that the

3-24     constitutional rule requiring bills to be read on three several

3-25     days in each house be suspended, and this rule is hereby suspended.