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