1-1 AN ACT
1-2 relating to the administration, management, operation, and
1-3 authority of water districts and authorities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 36.060, Water Code, is amended by adding
1-6 Subsection (d) to read as follows:
1-7 (d) Section 36.052(a) notwithstanding, this section prevails
1-8 over any other law in conflict with or inconsistent with this
1-9 section, including a special law governing a specific district. If
1-10 the application of this section results in an increase in the fees
1-11 of office for any district, that district's fees of office shall
1-12 not increase unless the district's board by resolution authorizes
1-13 payment of the higher fees.
1-14 SECTION 2. Section 36.068, Water Code, is amended by adding
1-15 Subsection (d) to read as follows:
1-16 (d) The board may establish a sick leave pool for employees
1-17 of the district in the same manner as that authorized for the
1-18 creation of a sick leave pool for state employees by Subchapter A,
1-19 Chapter 661, Government Code.
1-20 SECTION 3. Subchapter D, Chapter 36, Water Code, is amended
1-21 by adding Section 36.123 to read as follows:
1-22 Sec. 36.123. RIGHT TO ENTER LAND. (a) The directors,
1-23 engineers, attorneys, agents, operators, and employees of a
1-24 district or water supply corporation may go on any land to inspect,
2-1 make surveys, or perform tests to determine the condition, value,
2-2 and usability of the property, with reference to the proposed
2-3 location of works, improvements, plants, facilities, equipment, or
2-4 appliances. The cost of restoration shall be borne by the district
2-5 or the water supply corporation.
2-6 (b) District employees and agents are entitled to enter any
2-7 public or private property within the boundaries of the district or
2-8 adjacent to any reservoir or other property owned by the district
2-9 at any reasonable time for the purpose of inspecting and
2-10 investigating conditions relating to the quality of water in the
2-11 state or the compliance with any rule, regulation, permit, or other
2-12 order of the district. District employees or agents acting under
2-13 this authority who enter private property shall observe the
2-14 establishment's rules and regulations concerning safety, internal
2-15 security, and fire protection and shall notify any occupant or
2-16 management of their presence and shall exhibit proper credentials.
2-17 SECTION 4. Section 49.001(a), Water Code, is amended by
2-18 amending Subdivision (1) and adding Subdivision (10) to read as
2-19 follows:
2-20 (1) "District" means any district or authority created
2-21 by authority of either Sections 52(b)(1) and (2), Article III, or
2-22 Section 59, Article XVI, Texas Constitution, regardless of how
2-23 created. The term "district" shall not include any navigation
2-24 district or port authority created under general or special law,
2-25 [or] any conservation and reclamation district created pursuant to
2-26 Chapter 62, Acts of the 52nd Legislature, 1951 (Article 8280-141,
2-27 Vernon's Texas Civil Statutes), or any conservation and reclamation
3-1 district governed by Chapter 36 unless a special law creating the
3-2 district or amending the law creating the district states that this
3-3 chapter applies to that district.
3-4 (10) "District facility" means tangible real and
3-5 personal property of the district, including any plant, equipment,
3-6 means, or instrumentality owned, leased, operated, used,
3-7 controlled, furnished, or supplied for, by, or in connection with
3-8 the business or operations of a district. The term specifically
3-9 includes a reservoir or easement of a district.
3-10 SECTION 5. Section 49.002, Water Code, is amended to read as
3-11 follows:
3-12 Sec. 49.002. APPLICABILITY. (a) Except as provided by
3-13 Subsection (b), this [This] chapter applies to all general and
3-14 special law districts to the extent that the provisions of this
3-15 chapter do not directly conflict with a provision in any other
3-16 chapter of this code or any Act creating or affecting a special law
3-17 district. In the event of such conflict, the specific provisions
3-18 in such other chapter or Act shall control.
3-19 (b) This chapter does not apply to a district governed by
3-20 Chapter 36 unless a special law creating the district or amending
3-21 the law creating the district states that this chapter applies to
3-22 that district.
3-23 SECTION 6. Section 49.054, Water Code, is amended by adding
3-24 new Subsection (d) and redesignating existing Subsections (d), (e),
3-25 and (f) as Subsections (e), (f), and (g) to read as follows:
3-26 (d) If the board appoints a director to serve as treasurer,
3-27 that director is not subject to the investment officer training
4-1 requirements of Section 2256.007, Government Code, unless the
4-2 director is also appointed as the district's investment officer
4-3 under Chapter 2256, Government Code.
4-4 (e) The board may appoint another director, the general
4-5 manager, or any employee as assistant or deputy secretary to assist
4-6 the secretary, and any such person shall be entitled to certify as
4-7 to the authenticity of any record of the district, including but
4-8 not limited to all proceedings relating to bonds, contracts, or
4-9 indebtedness of the district.
4-10 (f) [(e)] After any election or appointment of a director, a
4-11 district shall notify the executive director within 30 days after
4-12 the date of the election or appointment of the name and mailing
4-13 address of the director chosen and the date that director's term of
4-14 office expires. The executive director shall provide forms to the
4-15 district for such purpose.
4-16 (g) [(f)] This section does not apply to special water
4-17 authorities.
4-18 SECTION 7. Section 49.057(a), Water Code, is amended to read
4-19 as follows:
4-20 (a) The board shall be responsible for the management of all
4-21 the affairs of the district. The district shall employ or contract
4-22 with all persons, firms, partnerships, corporations, or other
4-23 entities, public or private, deemed necessary by the board for the
4-24 conduct of the affairs of the district, including, but not limited
4-25 to, engineers, attorneys, financial advisors, operators,
4-26 bookkeepers, tax assessors and collectors, auditors, and
4-27 administrative staff. The board may appoint an employee of a firm,
5-1 partnership, corporation, or other entity with which the district
5-2 has contracted to serve as the investment officer of the district
5-3 under Section 2256.007, Government Code.
5-4 SECTION 8. Section 49.066(a), Water Code, is amended to read
5-5 as follows:
5-6 (a) A district may sue and be sued in the courts of this
5-7 state in the name of the district by and through its board. A suit
5-8 for contract damages may be brought against a district only on a
5-9 written contract of the district approved by the district's board.
5-10 All courts shall take judicial notice of the creation of the
5-11 district and of its boundaries.
5-12 SECTION 9. Section 49.069, Water Code, is amended by adding
5-13 Subsection (d) to read as follows:
5-14 (d) The board may establish a sick leave pool for employees
5-15 of the district in the same manner as that authorized for the
5-16 creation of a sick leave pool for state employees by Subchapter A,
5-17 Chapter 661, Government Code.
5-18 SECTION 10. Section 49.105, Water Code, is amended to read
5-19 as follows:
5-20 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
5-21 in this code, a vacancy [all vacancies] on the board and in other
5-22 offices shall be filled for the unexpired term by appointment of
5-23 the board not later than the 60th day after the date the vacancy
5-24 occurs.
5-25 (b) If the board has not filled a vacancy by appointment
5-26 before the 61st day after the date the vacancy occurs, a petition,
5-27 signed by more than 10 percent of the registered voters of the
6-1 district, requesting the board to fill the vacancy by appointment
6-2 may be presented to the board.
6-3 (c) If the number of directors is reduced to fewer than a
6-4 majority or if a vacancy continues beyond the 90th day after the
6-5 date the vacancy occurs, the vacancy or vacancies shall be filled
6-6 by appointment by the commission if the district is required by
6-7 Section 49.181 to obtain commission approval of its bonds or by the
6-8 county commissioners court if the district was created by the
6-9 county commissioners court, regardless of whether a petition has
6-10 been presented to the board under Subsection (b). An appointed
6-11 director shall serve for the unexpired term of the director he or
6-12 she is replacing.
6-13 (d) [(c)] In the event of a failure to elect one or more
6-14 members of the board of a district resulting from the absence of,
6-15 or failure to vote by, the qualified voters in the district, the
6-16 current members of the board holding the positions not filled at
6-17 such election shall be deemed to have been reelected and shall
6-18 serve an additional term of office.
6-19 SECTION 11. Section 49.152, Water Code, is amended to read
6-20 as follows:
6-21 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
6-22 issue bonds, notes, or other obligations to borrow money for any
6-23 corporate purpose or combination of corporate purposes only in
6-24 compliance with the methods and procedures [specifically] provided
6-25 by this chapter or by other applicable [general] law.
6-26 SECTION 12. Section 49.155, Water Code, is amended to read
6-27 as follows:
7-1 Sec. 49.155. PAYMENT [REPAYMENT] OF EXPENSES. (a) The
7-2 district may pay out of bond proceeds or other available funds of
7-3 the district all [costs and] expenses of the district authorized by
7-4 this section, including expenses reasonable and necessary to effect
7-5 the issuance, sale, and delivery of bonds as determined by the
7-6 board, [necessarily incurred in the organization and operation of a
7-7 district during creation and construction periods] including, but
7-8 not limited to, the following:
7-9 (1) interest during construction not to exceed three
7-10 years after acceptance of the project [organizational,
7-11 administrative, and operating expenses];
7-12 (2) capitalized interest not to exceed three years'
7-13 interest;
7-14 (3) reasonable and necessary reserve funds not to
7-15 exceed two years' interest on the bonds;
7-16 (4) interest on funds advanced to the district;
7-17 (5) financial advisor, bond counsel, attorney, and
7-18 other consultant fees;
7-19 (6) paying agent, registrar, and escrow agent fees;
7-20 (7) right-of-way acquisition;
7-21 (8) underwriter's discounts or premiums;
7-22 (9) engineering fees, including surveying expenses and
7-23 plan review fees;
7-24 (10) commission and attorney general fees;
7-25 (11) printing costs;
7-26 (12) all organizational, administrative, and operating
7-27 costs during creation and construction periods;
8-1 (13) the cost of investigation and making plans,
8-2 including preliminary plans and associated engineering reports;
8-3 (14) land required for stormwater control;
8-4 (15) costs associated with requirements for federal
8-5 stormwater permits; and
8-6 (16) costs associated with requirements for endangered
8-7 species permits[;]
8-8 [(3) the cost of the engineer's report;]
8-9 [(4) legal fees; and]
8-10 [(5) any other incidental expenses].
8-11 (b) For purposes of this section, construction periods shall
8-12 mean any periods during which the district is constructing its
8-13 facilities or there is construction by third parties of above
8-14 ground improvements within the district, but in no event longer
8-15 than five years.
8-16 (c) The district may reimburse any person for money advanced
8-17 for the purposes in Subsection (a) and may be charged interest on
8-18 such funds.
8-19 (d) These payments may be made from money obtained from the
8-20 issuance of notes or the sale of bonds issued by the district or
8-21 out of maintenance taxes or other revenues of the district.
8-22 SECTION 13. Section 53.063, Water Code, is amended to read
8-23 as follows:
8-24 Sec. 53.063. SUPERVISOR'S QUALIFICATIONS. To be qualified
8-25 for election as a supervisor, a person must be a registered voter
8-26 of the district[:]
8-27 [(1) a resident of the district;]
9-1 [(2) an owner of land in the district; and]
9-2 [(3) 21 years old or older at the time of his
9-3 election].
9-4 SECTION 14. Section 661.001(4), Government Code, is amended
9-5 to read as follows:
9-6 (4) "State agency" means:
9-7 (A) a board, commission, department, or other
9-8 agency in the executive branch of state government created by the
9-9 constitution or a statute of the state;
9-10 (B) an institution of higher education as
9-11 defined by Section 61.003, Education Code;
9-12 (C) [a river authority;]
9-13 [(D)] a legislative agency, but not either house
9-14 or a member of the legislature; or
9-15 (D) [(E)] the supreme court, the court of
9-16 criminal appeals, a court of appeals, or a state judicial agency.
9-17 SECTION 15. Sections 49.072 and 54.103, Water Code, are
9-18 repealed.
9-19 SECTION 16. This Act takes effect September 1, 1999.
9-20 SECTION 17. The importance of this legislation and the
9-21 crowded condition of the calendars in both houses create an
9-22 emergency and an imperative public necessity that the
9-23 constitutional rule requiring bills to be read on three several
9-24 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 846 was passed by the House on March
25, 1999, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 846 on May 20, 1999, and requested
the appointment of a conference committee to consider the
differences between the two houses; and that the House adopted the
conference committee report on H.B. No. 846 on May 30, 1999, by a
non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 846 was passed by the Senate, with
amendments, on May 18, 1999, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 846 on May 30, 1999, by
a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor