1-1 By: Lewis of Orange (Senate Sponsor - Brown) H.B. No. 846
1-2 (In the Senate - Received from the House March 29, 1999;
1-3 March 30, 1999, read first time and referred to Committee on
1-4 Natural Resources; May 13, 1999, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 5, Nays 0;
1-6 May 13, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 846 By: Brown
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the administration, management, operation, and
1-11 authority of water districts and authorities; providing a penalty.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 36.001(8), Water Code, is amended to read
1-14 as follows:
1-15 (8) "Waste" means any one or more of the following:
1-16 (A) withdrawal of groundwater from a groundwater
1-17 reservoir at a rate and in an amount that causes or threatens to
1-18 cause intrusion into the reservoir of water unsuitable for
1-19 agricultural, gardening, domestic, or stock raising purposes;
1-20 (B) the flowing or producing of wells from a
1-21 groundwater reservoir if the water produced is not used for a
1-22 beneficial purpose;
1-23 (C) escape of groundwater from a groundwater
1-24 reservoir to any other reservoir or geologic strata that does not
1-25 contain groundwater;
1-26 (D) pollution or harmful alteration of
1-27 groundwater in a groundwater reservoir by saltwater or by other
1-28 deleterious matter admitted from another stratum or from the
1-29 surface of the ground;
1-30 (E) wilfully or negligently causing, suffering,
1-31 or allowing groundwater to escape into any river, creek, natural
1-32 watercourse, depression, lake, reservoir, drain, sewer, street,
1-33 highway, road, or road ditch, or onto any land other than that of
1-34 the owner of the well unless such discharge is authorized by
1-35 permit, rule, or order issued by the commission under Chapter 26;
1-36 (F) groundwater pumped for irrigation that
1-37 escapes as irrigation tailwater onto land other than that of the
1-38 owner of the well unless permission has been granted by the
1-39 occupant of the land receiving the discharge; [or]
1-40 (G) pumping groundwater from one aquifer to
1-41 another aquifer for recharge purposes if the board of a district
1-42 with jurisdiction over the receiving aquifer finds that the
1-43 activity has caused harmful alteration to the receiving aquifer; or
1-44 (H) for water produced from an artesian well,
1-45 "waste" has the meaning assigned by Section 11.205.
1-46 SECTION 2. Section 36.060, Water Code, is amended by adding
1-47 Subsection (d) to read as follows:
1-48 (d) Section 36.052(a) notwithstanding, this section prevails
1-49 over any other law in conflict with or inconsistent with this
1-50 section, including a special law governing a specific district. If
1-51 the application of this section results in an increase in the fees
1-52 of office for any district, that district's fees of office shall
1-53 not increase unless the district's board by resolution authorizes
1-54 payment of the higher fees.
1-55 SECTION 3. Section 36.068, Water Code, is amended by adding
1-56 Subsection (d) to read as follows:
1-57 (d) The board may establish a sick leave pool for employees
1-58 of the district in the same manner as that authorized for the
1-59 creation of a sick leave pool for state employees by Subchapter A,
1-60 Chapter 661, Government Code.
1-61 SECTION 4. Section 36.113(a), Water Code, is amended to read
1-62 as follows:
1-63 (a) A district shall require permits for the drilling,
1-64 equipping, or completing of wells or for substantially altering the
2-1 size of wells or well pumps that will be or are used to obtain
2-2 water from an aquifer within the boundaries of the district.
2-3 SECTION 5. Section 36.1131, Water Code, is amended by adding
2-4 Subsection (c) to read as follows:
2-5 (c) For purposes of Subsection (b)(5), "beneficial use"
2-6 includes pumping from one aquifer to another for recharge or other
2-7 purposes if the board of a district with jurisdiction over the
2-8 receiving aquifer has determined that the activity is beneficial.
2-9 SECTION 6. Subchapter D, Chapter 36, Water Code, is amended
2-10 by adding Section 36.123 to read as follows:
2-11 Sec. 36.123. RIGHT TO ENTER LAND. (a) The directors,
2-12 engineers, attorneys, agents, operators, and employees of a
2-13 district or water supply corporation may go on any land to inspect,
2-14 make surveys, or perform tests to determine the condition, value,
2-15 and usability of the property, with reference to the proposed
2-16 location of works, improvements, plants, facilities, equipment, or
2-17 appliances. The cost of restoration shall be borne by the district
2-18 or the water supply corporation.
2-19 (b) District employees and agents are entitled to enter any
2-20 public or private property within the boundaries of the district or
2-21 adjacent to any reservoir or other property owned by the district
2-22 at any reasonable time for the purpose of inspecting and
2-23 investigating conditions relating to the quality of water in the
2-24 state or the compliance with any rule, regulation, permit, or other
2-25 order of the district. District employees or agents acting under
2-26 this authority who enter private property shall observe the
2-27 establishment's rules and regulations concerning safety, internal
2-28 security, and fire protection and shall notify any occupant or
2-29 management of their presence and shall exhibit proper credentials.
2-30 SECTION 7. Section 49.001(a), Water Code, is amended by
2-31 amending Subdivision (1) and adding Subdivision (10) to read as
2-32 follows:
2-33 (1) "District" means any district or authority created
2-34 by authority of either Sections 52(b)(1) and (2), Article III, or
2-35 Section 59, Article XVI, Texas Constitution, regardless of how
2-36 created. The term "district" shall not include any navigation
2-37 district or port authority created under general or special law,
2-38 [or] any conservation and reclamation district created pursuant to
2-39 Chapter 62, Acts of the 52nd Legislature, 1951 (Article 8280-141,
2-40 Vernon's Texas Civil Statutes), or any conservation and reclamation
2-41 district governed by Chapter 36 unless a special law creating the
2-42 district or amending the law creating the district states that this
2-43 chapter applies to that district.
2-44 (10) "District facility" means tangible real and
2-45 personal property of the district, including any plant, equipment,
2-46 means, or instrumentality owned, leased, operated, used,
2-47 controlled, furnished, or supplied for, by, or in connection with
2-48 the business or operations of a district. The term specifically
2-49 includes a reservoir or easement of a district.
2-50 SECTION 8. Section 49.002, Water Code, is amended to read as
2-51 follows:
2-52 Sec. 49.002. APPLICABILITY. (a) Except as provided by
2-53 Subsection (b), this [This] chapter applies to all general and
2-54 special law districts to the extent that the provisions of this
2-55 chapter do not directly conflict with a provision in any other
2-56 chapter of this code or any Act creating or affecting a special law
2-57 district. In the event of such conflict, the specific provisions
2-58 in such other chapter or Act shall control.
2-59 (b) This chapter does not apply to a district governed by
2-60 Chapter 36 unless a special law creating the district or amending
2-61 the law creating the district states that this chapter applies to
2-62 that district.
2-63 SECTION 9. Section 49.054, Water Code, is amended by adding
2-64 new Subsection (d) and redesignating existing Subsections (d), (e),
2-65 and (f) as Subsections (e), (f), and (g) to read as follows:
2-66 (d) If the board appoints a director to serve as treasurer,
2-67 that director is not subject to the investment officer training
2-68 requirements of Section 2256.007, Government Code, unless the
2-69 director is also appointed as the district's investment officer
3-1 under Chapter 2256, Government Code.
3-2 (e) The board may appoint another director, the general
3-3 manager, or any employee as assistant or deputy secretary to assist
3-4 the secretary, and any such person shall be entitled to certify as
3-5 to the authenticity of any record of the district, including but
3-6 not limited to all proceedings relating to bonds, contracts, or
3-7 indebtedness of the district.
3-8 (f) [(e)] After any election or appointment of a director, a
3-9 district shall notify the executive director within 30 days after
3-10 the date of the election or appointment of the name and mailing
3-11 address of the director chosen and the date that director's term of
3-12 office expires. The executive director shall provide forms to the
3-13 district for such purpose.
3-14 (g) [(f)] This section does not apply to special water
3-15 authorities.
3-16 SECTION 10. Section 49.057(a), Water Code, is amended to
3-17 read as follows:
3-18 (a) The board shall be responsible for the management of all
3-19 the affairs of the district. The district shall employ or contract
3-20 with all persons, firms, partnerships, corporations, or other
3-21 entities, public or private, deemed necessary by the board for the
3-22 conduct of the affairs of the district, including, but not limited
3-23 to, engineers, attorneys, financial advisors, operators,
3-24 bookkeepers, tax assessors and collectors, auditors, and
3-25 administrative staff. The board may appoint an employee of a firm,
3-26 partnership, corporation, or other entity with which the district
3-27 has contracted to serve as the investment officer of the district
3-28 under Section 2256.007, Government Code.
3-29 SECTION 11. Section 49.066(a), Water Code, is amended to
3-30 read as follows:
3-31 (a) A district may sue and be sued in the courts of this
3-32 state in the name of the district by and through its board. A suit
3-33 for contract damages may be brought against a district only on a
3-34 written contract of the district approved by the district's board.
3-35 All courts shall take judicial notice of the creation of the
3-36 district and of its boundaries.
3-37 SECTION 12. Section 49.069, Water Code, is amended by adding
3-38 Subsection (d) to read as follows:
3-39 (d) The board may establish a sick leave pool for employees
3-40 of the district in the same manner as that authorized for the
3-41 creation of a sick leave pool for state employees by Subchapter A,
3-42 Chapter 661, Government Code.
3-43 SECTION 13. Section 49.102, Water Code, is amended by adding
3-44 a new Subsection (i) and redesignating existing Subsection (i) as
3-45 Subsection (j) to read as follows:
3-46 (i) A district, at an election required under Subsection
3-47 (a), may submit to the qualified voters of the district the
3-48 proposition of whether a plan as authorized by Section 49.351
3-49 should be implemented or entered into by the district.
3-50 (j) The provisions of this section shall not be applicable
3-51 to any district exercising the powers of Chapter 375, Local
3-52 Government Code, or any district created by a special Act of the
3-53 legislature that does not require a confirmation election.
3-54 SECTION 14. Section 49.105, Water Code, is amended to read
3-55 as follows:
3-56 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
3-57 in this code, a vacancy [all vacancies] on the board and in other
3-58 offices shall be filled for the unexpired term by appointment of
3-59 the board not later than the 60th day after the date the vacancy
3-60 occurs.
3-61 (b) If the board has not filled a vacancy by appointment
3-62 before the 61st day after the date the vacancy occurs, a petition,
3-63 signed by more than 10 percent of the registered voters of the
3-64 district, requesting the board to fill the vacancy by appointment
3-65 may be presented to the board.
3-66 (c) If the number of directors is reduced to fewer than a
3-67 majority or if a vacancy continues beyond the 90th day after the
3-68 date the vacancy occurs, the vacancy or vacancies shall be filled
3-69 by appointment by the commission if the district is required by
4-1 Section 49.181 to obtain commission approval of its bonds or by the
4-2 county commissioners court if the district was created by the
4-3 county commissioners court, regardless of whether a petition has
4-4 been presented to the board under Subsection (b). An appointed
4-5 director shall serve for the unexpired term of the director he or
4-6 she is replacing.
4-7 (d) [(c)] In the event of a failure to elect one or more
4-8 members of the board of a district resulting from the absence of,
4-9 or failure to vote by, the qualified voters in the district, the
4-10 current members of the board holding the positions not filled at
4-11 such election shall be deemed to have been reelected and shall
4-12 serve an additional term of office.
4-13 SECTION 15. Section 49.152, Water Code, is amended to read
4-14 as follows:
4-15 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
4-16 issue bonds, notes, or other obligations to borrow money for any
4-17 corporate purpose or combination of corporate purposes only in
4-18 compliance with the methods and procedures [specifically] provided
4-19 by this chapter or by other applicable [general] law.
4-20 SECTION 16. Section 49.155, Water Code, is amended to read
4-21 as follows:
4-22 Sec. 49.155. PAYMENT [REPAYMENT] OF EXPENSES. (a) The
4-23 district may pay out of bond proceeds or other available funds of
4-24 the district all [costs and] expenses of the district authorized by
4-25 this section, including expenses reasonable and necessary to effect
4-26 the issuance, sale, and delivery of bonds as determined by the
4-27 board, [necessarily incurred in the organization and operation of a
4-28 district during creation and construction periods] including, but
4-29 not limited to, the following:
4-30 (1) interest during construction not to exceed three
4-31 years after acceptance of the project [organizational,
4-32 administrative, and operating expenses];
4-33 (2) capitalized interest not to exceed three years'
4-34 interest;
4-35 (3) reasonable and necessary reserve funds not to
4-36 exceed two years' interest on the bonds;
4-37 (4) interest on funds advanced to the district;
4-38 (5) financial advisor, bond counsel, attorney, and
4-39 other consultant fees;
4-40 (6) paying agent, registrar, and escrow agent fees;
4-41 (7) right-of-way acquisition;
4-42 (8) underwriter's discounts or premiums;
4-43 (9) engineering fees, including surveying expenses and
4-44 plan review fees;
4-45 (10) commission and attorney general fees;
4-46 (11) printing costs;
4-47 (12) all organizational, administrative, and operating
4-48 costs during creation and construction periods;
4-49 (13) the cost of investigation and making plans,
4-50 including preliminary plans and associated engineering reports;
4-51 (14) land required for stormwater control;
4-52 (15) costs associated with requirements for federal
4-53 stormwater permits; and
4-54 (16) costs associated with requirements for endangered
4-55 species permits[;]
4-56 [(3) the cost of the engineer's report;]
4-57 [(4) legal fees; and]
4-58 [(5) any other incidental expenses].
4-59 (b) For purposes of this section, construction periods shall
4-60 mean any periods during which the district is constructing its
4-61 facilities or there is construction by third parties of above
4-62 ground improvements within the district, but in no event longer
4-63 than five years.
4-64 (c) The district may reimburse any person for money advanced
4-65 for the purposes in Subsection (a) and may be charged interest on
4-66 such funds.
4-67 (d) These payments may be made from money obtained from the
4-68 issuance of notes or the sale of bonds issued by the district or
4-69 out of maintenance taxes or other revenues of the district.
5-1 SECTION 17. Subchapter E, Chapter 49, Water Code, is amended
5-2 by adding Section 49.159 to read as follows:
5-3 Sec. 49.159. MUNICIPALITY'S OBLIGATION ON ANNEXATION OF
5-4 DISTRICT TO PAY DISTRICT-RELATED COSTS AND EXPENSES OF LANDOWNER OR
5-5 DEVELOPER. (a) Notwithstanding any other law, if a district is
5-6 annexed by a municipality with a population of less than 1.5
5-7 million the municipality shall pay in cash to the landowner or
5-8 developer of the district an amount equal to the sum of all actual
5-9 costs and expenses payable to the landowner or developer in
5-10 connection with the district that the district, in writing, has
5-11 agreed to pay and that would otherwise have been eligible for
5-12 reimbursement from bond proceeds under commission rules and
5-13 requirements in existence on the date of annexation.
5-14 (b) For an annexation occurring before September 1, 1999,
5-15 the amount owed by a municipality under Subsection (a) shall be
5-16 paid before the first day of the fourth calendar month following
5-17 the month in which the municipality enacted its annexation
5-18 ordinance, or the last day of the month in which the municipality
5-19 receives notice of preclearance of the annexation by a federal
5-20 authority, whichever is later. An amount due but unpaid by the
5-21 deadline established by this subsection incurs a penalty of six
5-22 percent beginning on the first day of the fifth calendar month
5-23 after the deadline, plus one percent for each additional month or
5-24 part of a month that the debt remains unpaid.
5-25 (c) For an annexation occurring on or after September 1,
5-26 1999, an unpaid debt begins incurring a penalty on the first day
5-27 after the date the municipality enacts the annexation ordinance.
5-28 SECTION 18. Section 49.211, Water Code, is amended by adding
5-29 Subsection (e) to read as follows:
5-30 (e) A district that is authorized by law to engage in
5-31 drainage or flood control activities may include among the
5-32 district's land, works, improvements, facilities, plants,
5-33 equipment, and appliances the following areas and projects
5-34 associated with drainage or flood control projects of the district:
5-35 (1) stormwater retention or detention lands and
5-36 projects;
5-37 (2) sedimentation basins or other stormwater quality
5-38 control facilities or structures;
5-39 (3) floodplain and wetlands mitigation lands and
5-40 projects;
5-41 (4) habitat reconstruction or restoration lands and
5-42 projects; and
5-43 (5) any temporary, permanent, constant, or variable
5-44 level impoundments of water related to projects in this subsection.
5-45 SECTION 19. Section 49.212, Water Code, is amended by
5-46 amending Subsections (a) and (d) and adding Subsections (e), (f),
5-47 and (g) to read as follows:
5-48 (a) A district may adopt and enforce all necessary charges,
5-49 mandatory fees, or rentals, in addition to taxes, for providing or
5-50 making available any district facility or service, including
5-51 fire-fighting activities provided under Section 49.351.
5-52 (d) Notwithstanding any provision of law to the contrary, a
5-53 district that charges a fee that is an impact fee as described in
5-54 Section 395.001(4), Local Government Code, must comply with Chapter
5-55 395, Local Government Code. A charge or fee by a district for
5-56 construction, installation, or inspection of a tap or connection to
5-57 district water, sanitary sewer, or drainage facilities, including
5-58 all necessary service lines and meters, or for wholesale facilities
5-59 that serve such water, sanitary sewer, or drainage facilities that
5-60 (i) does not exceed three times the actual and reasonable costs to
5-61 the district for such tap or connection or (ii) if [made to a
5-62 nontaxable entity] for retail or wholesale service, does not exceed
5-63 the actual costs to the district for such work and for all
5-64 facilities that are necessary to provide district services [to such
5-65 entity] and that are financed or are to be financed in whole or in
5-66 part by tax-supported or revenue bonds of the district, shall not
5-67 be deemed to be an impact fee under Chapter 395, Local Government
5-68 Code.
5-69 (e) Notwithstanding any law to the contrary, a political
6-1 subdivision that pays a fee charged by a district under Subsection
6-2 (d) may impose and collect the same charge or fee from users of the
6-3 political subdivision's water, sanitary sewer, or drainage system
6-4 in order to pay the charge or fee imposed on the political
6-5 subdivision, and the charge or fee by the political subdivision is
6-6 not an impact fee under Chapter 395, Local Government Code.
6-7 (f) Chapter 2007, Government Code, does not apply to a tax
6-8 levied, a standby fee imposed, or a charge, fee, or rental adopted
6-9 or enforced by a district under this chapter, any other chapter of
6-10 this code, or Chapter 395, Local Government Code.
6-11 (g) A district shall base a wastewater charge for a retail
6-12 residential customer on the average winter water use by the
6-13 residential customer during the months of December, January, and
6-14 February for the billing of retail residential wastewater service
6-15 unless:
6-16 (1) the information is not available to the district;
6-17 or
6-18 (2) the district has installed individual residential
6-19 meters to reflect actual wastewater usage.
6-20 SECTION 20. Section 49.215, Water Code, is amended to read
6-21 as follows:
6-22 Sec. 49.215. SERVICE TO AREAS OUTSIDE A [THE] DISTRICT OR
6-23 WATER SUPPLY CORPORATION. (a) A district or water supply
6-24 corporation may purchase, construct, acquire, own, operate, repair,
6-25 improve, or extend all works, improvements, facilities, plants,
6-26 equipment, and appliances necessary to provide any services or
6-27 facilities authorized to be provided by the district or corporation
6-28 to areas contiguous to or in the vicinity of the district or
6-29 corporation provided the district or corporation does not duplicate
6-30 a service or facility of another public entity. A district or
6-31 corporation providing potable water and sewer utility services to
6-32 household users shall not provide services or facilities to serve
6-33 areas outside the district or corporation that are also within the
6-34 corporate limits of a city without securing a resolution or
6-35 ordinance of the city granting consent for the district or
6-36 corporation to serve the area within the city. Notwithstanding any
6-37 term of a water supply contract between a water supply corporation
6-38 and a political subdivision to the contrary, the corporation may,
6-39 on approval of a service area amendment by the commission to serve
6-40 the area, use the water sold by the political subdivision under a
6-41 contract to provide service to the service area provided the
6-42 service does not affect a term of the contract relating to the
6-43 amount of water to be supplied. A term of the contract that
6-44 purports to authorize a political subdivision to cancel a contract
6-45 if the water sold to the corporation is used outside the area
6-46 permitted by the political subdivision is not effective to the
6-47 extent the water is used by the corporation within an area lawfully
6-48 served by the corporation under Chapter 13.
6-49 (b) To secure money for this purpose, a district is
6-50 authorized to issue and sell negotiable bonds and notes payable
6-51 from the levy and collection of ad valorem taxes on all taxable
6-52 property within the district or from all or any designated part of
6-53 the revenues received from the operation of the district's works,
6-54 improvements, facilities, plants, equipment, and appliances or from
6-55 a combination of taxes and revenues.
6-56 (c) Any bonds and notes may be issued upon the terms and
6-57 conditions set forth in this code.
6-58 (d) A district shall not be required to hold a certificate
6-59 of convenience and necessity as a precondition for providing retail
6-60 water or sewer service to any customer or service area,
6-61 notwithstanding the fact that such customer or service area may be
6-62 located either within or outside the boundaries of the district or
6-63 has previously received water or sewer service from an entity
6-64 required by law to hold a certificate of convenience and necessity
6-65 as a precondition for such service. This subsection does not
6-66 authorize a district to provide services within an area for which a
6-67 retail public utility holds a certificate of convenience and
6-68 necessity or within the boundaries of another district without that
6-69 district's consent, unless the district has a valid certificate of
7-1 convenience and necessity to provide services to that area.
7-2 (e) A district or corporation is authorized to establish,
7-3 maintain, revise, charge, and collect the rates, fees, rentals,
7-4 tolls, or other charges for the use, services, and facilities that
7-5 provide service to areas outside the district or corporation that
7-6 are considered necessary and may be higher than those charged for
7-7 comparable service to users within the district or corporation.
7-8 (f) The rates, fees, rentals, tolls, or other charges shall
7-9 be at least sufficient to meet the expense of operating and
7-10 maintaining the services and facilities for a water and sanitary
7-11 sewer system serving areas outside the district or corporation and
7-12 to pay the principal of and interest and redemption price on bonds
7-13 issued to purchase, construct, acquire, own, operate, repair,
7-14 improve, or extend the services or facilities.
7-15 SECTION 21. Section 49.218, Water Code, is amended by adding
7-16 Subsection (e) to read as follows:
7-17 (e) A district or water supply corporation may issue bonds,
7-18 notes, or other obligations to acquire property as authorized by
7-19 this section.
7-20 SECTION 22. Section 49.226, Water Code, is amended to read
7-21 as follows:
7-22 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
7-23 PERSONAL PROPERTY. (a) Any personal property valued at more than
7-24 $300 or any land or interest in land owned by the district which is
7-25 found by the board to be surplus and is not needed by the district
7-26 may be sold under order of the board either by public or private
7-27 sale, or the land, interest in land, or personal property may be
7-28 exchanged for other land, interest in land, or personal property
7-29 needed by the district. Except as provided in Subsection (b),
7-30 land, interest in land, or personal property must be exchanged for
7-31 like fair market value, which value may be determined by the
7-32 district.
7-33 (b) Any property dedicated to or acquired by the district
7-34 without expending district funds may be abandoned or released to
7-35 the original grantor, the grantor's heirs, assigns, executors, or
7-36 successors upon terms and conditions deemed necessary or
7-37 advantageous to the district and without receiving compensation for
7-38 such abandonment or release. District property may also be
7-39 abandoned, released, exchanged, or transferred to another district,
7-40 municipality, county, countywide agency, or authority upon terms
7-41 and conditions deemed necessary or advantageous to the district.
7-42 Narrow strips of property resulting from boundary or surveying
7-43 conflicts or similar causes, or from insubstantial encroachments by
7-44 abutting property owners, or property of larger configuration that
7-45 has been subject to encroachments by abutting property owners for
7-46 more than 25 years may be abandoned, released, exchanged, or
7-47 transferred to such abutting owners upon terms and conditions
7-48 deemed necessary or advantageous to the district. Chapter 272,
7-49 Local Government Code, shall not apply to this section
7-50 [subsection].
7-51 (c) Before either a public or a private sale of real
7-52 property [not required by the district], the district shall give
7-53 notice of the intent to sell by publishing notice once a week for
7-54 two consecutive weeks in one or more newspapers with general
7-55 circulation in the district.
7-56 (d) If the district has outstanding bonds secured by a
7-57 pledge of tax revenues, the proceeds of the sale of property [not
7-58 required by the district] shall be applied to retire outstanding
7-59 bonds of the district [when required by the district's applicable
7-60 bond resolutions].
7-61 (e) If the district does not have any outstanding bonds, the
7-62 proceeds derived from the sale of real or [the] personal property
7-63 [or land not required by the district] may be used for any lawful
7-64 purpose.
7-65 SECTION 23. Subchapter H, Chapter 49, Water Code, is amended
7-66 by adding Section 49.233 to read as follows:
7-67 Sec. 49.233. PROHIBITION OF CERTAIN PRIVATE ON-SITE
7-68 FACILITIES. (a) A district that operates a wastewater collection
7-69 system to serve land within its boundaries by rule may prohibit the
8-1 installation of private on-site wastewater holding or treatment
8-2 facilities on land within the district that is not served by such
8-3 facilities. A district may not require a property owner who has
8-4 already installed an on-site wastewater holding or treatment
8-5 facility to connect to the district's wastewater collection system.
8-6 (b) A district that prohibits installation as described by
8-7 Subsection (a) shall agree to pay the owner of a particular tract
8-8 the costs of connecting the tract to the district's wastewater
8-9 collection system if the distance along public rights-of-way or
8-10 utility easements from the nearest point of the district's
8-11 wastewater collection system to the boundary line of the particular
8-12 tract requiring wastewater collection services is 1,000 feet or
8-13 more, subject to commission rules regarding reimbursement of those
8-14 costs.
8-15 SECTION 24. Section 49.271(c), Water Code, is amended to
8-16 read as follows:
8-17 (c) The district may adopt minimum criteria for the
8-18 qualifications of bidders on its construction contracts and for
8-19 sureties issuing payment and performance bonds. For construction
8-20 contracts over $25,000, the district shall require a person who
8-21 bids to submit a certified or cashier's check on a responsible bank
8-22 in the state equal to at least two percent of the total amount of
8-23 the bid, or a bid bond of at least two percent of the total amount
8-24 of the bid issued by a surety legally authorized to do business in
8-25 this state, as a good faith deposit to ensure execution of the
8-26 contract. If the successful bidder fails or refuses to enter into
8-27 a proper contract with the district, or fails or refuses to furnish
8-28 the payment and performance bonds [bond] required by law, the
8-29 bidder forfeits the deposit. The payment, performance, and bid
8-30 bonding requirements of this subsection do not apply to contracts
8-31 for the purchase of equipment, materials, and machinery not
8-32 otherwise incorporated into a construction project.
8-33 SECTION 25. Sections 49.273(i) and (j), Water Code, are
8-34 amended to read as follows:
8-35 (i) If changes in plans or specifications are necessary
8-36 after the performance of the contract is begun or if it is
8-37 necessary to decrease or increase the quantity of the work to be
8-38 performed or of the materials, equipment, or supplies to be
8-39 furnished, the board may approve change orders making the changes.
8-40 The original contract price may not be increased by more than 10
8-41 percent of the aggregate of those change orders. Additional change
8-42 orders [Change orders to contracts] may be issued only as a result
8-43 of unanticipated conditions encountered during construction,
8-44 repair, or renovation or changes in regulatory criteria or to
8-45 facilitate project coordination with other political entities.
8-46 (j) The board is not required to advertise or seek
8-47 competitive bids for the repair of district facilities if the scope
8-48 or extent of the repair work cannot be readily ascertained or if
8-49 the nature of the repair work does not readily lend itself to
8-50 competitive bidding [by the district's operator if the cost of the
8-51 repair is less than or equal to the advertising requirements of
8-52 this section].
8-53 SECTION 26. Subchapter I, Chapter 49, Water Code, is amended
8-54 by adding Section 49.279 to read as follows:
8-55 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
8-56 alternative procedures provided by Section 2258.022, Government
8-57 Code:
8-58 (1) a district located wholly or partially within one
8-59 or more municipalities or within the extraterritorial jurisdiction
8-60 of one or more municipalities may establish its prevailing wage
8-61 rate for public works by adopting the prevailing wage rate of:
8-62 (A) one of the municipalities; or
8-63 (B) the county in which the district is located;
8-64 and
8-65 (2) a district not located wholly or partially within
8-66 the extraterritorial jurisdiction of any municipality may establish
8-67 the district's prevailing wage rate by adopting the wage rate of
8-68 the county in which the district is located.
8-69 SECTION 27. Section 49.304(a), Water Code, is amended to
9-1 read as follows:
9-2 (a) If the board determines that an exclusion hearing should
9-3 be held as provided in Section 49.303(a) or (c), or if a written
9-4 petition requesting an exclusion hearing is filed with the
9-5 secretary of the board as provided in Section 49.303(b) [49.303],
9-6 the board shall give notice of the time and place of a hearing to
9-7 announce its own conclusions relating to land or other property to
9-8 be excluded and to receive petitions for exclusion of land or other
9-9 property.
9-10 SECTION 28. Subchapter J, Chapter 49, Water Code, is amended
9-11 by adding Section 49.315 to read as follows:
9-12 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
9-13 (a) A district may add or exclude land in accordance with this
9-14 subchapter:
9-15 (1) after a district is created by order of the
9-16 commission or another governmental entity or by special Act of the
9-17 legislature; and
9-18 (2) before an election is held as required by Section
9-19 49.102.
9-20 (b) If land is added or excluded as provided by this
9-21 section, the election to confirm the district required by Section
9-22 49.102 shall be to confirm the district as modified.
9-23 SECTION 29. Section 49.327, Water Code, is amended to read
9-24 as follows:
9-25 Sec. 49.327. ASSETS ESCHEAT TO STATE. (a) Upon the
9-26 dissolution of a district by the commission, all assets of the
9-27 district shall escheat to the State of Texas. The assets shall be
9-28 administered by the comptroller and shall be disposed of in the
9-29 manner provided by Chapter 74, Property Code.
9-30 (b) Title 6, Property Code, does not apply to any personal
9-31 property held by a district that has not been dissolved by order of
9-32 the commission.
9-33 SECTION 30. Sections 49.351(a)-(c) and (g)-(j), Water Code,
9-34 are amended to read as follows:
9-35 (a) A district providing potable water or sewer service to
9-36 household users may establish, operate, and maintain a fire
9-37 department to perform all fire-fighting activities within the
9-38 district as provided in this subchapter and may issue bonds or
9-39 impose a mandatory fee, with voter approval, [bonds] for financing
9-40 a plan approved in accordance with this section, [the establishment
9-41 of the fire department] including the construction and purchase of
9-42 necessary buildings, facilities, land, and equipment and the
9-43 provision of an adequate water supply.
9-44 (b) After approval of the district electors of a plan to
9-45 operate, [or] jointly operate, or jointly fund the operation of a
9-46 fire department and after complying with Subsections (g), (h), and
9-47 (i), the district or districts shall provide an adequate system and
9-48 water supply for fire-fighting purposes, may purchase necessary
9-49 land, may construct and purchase necessary buildings, facilities,
9-50 and equipment, and may employ or contract with a fire department to
9-51 employ all necessary personnel including supervisory personnel to
9-52 operate the fire department.
9-53 (c) Bonds [issued] for financing a plan approved in
9-54 accordance with this section [establishment of the fire department]
9-55 shall be authorized and may be issued, and a district shall be
9-56 authorized to levy a tax to pay the principal of and interest on
9-57 such bonds, as provided by law for authorization and issuance of
9-58 other bonds of the district.
9-59 (g) A district or districts proposing to act jointly shall
9-60 develop a detailed plan for the establishment, operation, and
9-61 maintenance of the proposed department, including a detailed
9-62 presentation of all financial requirements. If a district is
9-63 entering into a contract under Subsection (e), the district shall
9-64 develop a plan that describes [in detail] the contract and
9-65 [facilities and equipment to be devoted to service to the district
9-66 and all proposals for providing the service and that] includes a
9-67 presentation of the financial requirements under the contract. A
9-68 plan required by this subsection may be included in a plan or
9-69 report otherwise required by this title for the creation of a
10-1 district or may be submitted to the commission for approval any
10-2 time after the creation of the district. [Before adoption of a
10-3 plan and any contract by the district, the board shall hold a
10-4 hearing at which any person residing in the district may present
10-5 testimony for and against the proposed plan and any proposed
10-6 contract. Notice of the hearing and the place at which the plan
10-7 and any contract may be examined shall be posted in two public
10-8 places within the district at least 10 days before the date of the
10-9 hearing.]
10-10 (h) If no plan was approved by the commission at the time of
10-11 the district's creation, after [After] adoption of the plan and any
10-12 contract by the board, the plan and financial presentation,
10-13 together with any contract and a written report in a form
10-14 prescribed by the executive director describing existing fire
10-15 departments and fire-fighting services available within 25 miles of
10-16 the boundaries of the district, shall be submitted to the executive
10-17 director for consideration by the commission under rules adopted by
10-18 the commission. [Before approval or disapproval, the commission
10-19 shall hold a hearing. Notice of the hearing before the commission
10-20 shall be posted by the board in at least two public places in the
10-21 district at least five days before the hearing.] Before the
10-22 commission approves the application, it must find that it is
10-23 economically feasible for the district to implement the plan and
10-24 meet the provisions of any contract and shall take into
10-25 consideration in giving its approval the general financial
10-26 condition of the district and the economic feasibility of the
10-27 district carrying out the plan or meeting the obligations of the
10-28 contract. A plan approved by the commission as part of the
10-29 creation of a district does not require further commission approval
10-30 unless the district materially alters the plan.
10-31 (i) After approval of a plan by the commission, the district
10-32 shall submit to the electors of the district at the election to
10-33 approve bonds or to impose a mandatory fee for financing the plan,
10-34 or if no bonds or fees are to be approved, at an election called
10-35 for approval of the plan, which may be held in conjunction with an
10-36 election required by Section 49.102, the proposition of whether or
10-37 not the plan should be implemented or entered into by the district.
10-38 The ballots at the election shall be printed, as applicable, to
10-39 provide for voting for or against the proposition: "The
10-40 implementation of the plan for (operation/joint operation) of a
10-41 fire department"; or "The plan and contract to provide
10-42 fire-fighting services for the district."
10-43 (j) [No funds of the district may be used to establish a
10-44 fire department, to enter into joint operation of a fire
10-45 department, or to contract for fire-fighting services without the
10-46 approval of a plan by the electors as provided in this section.
10-47 However, the district may use available funds for preparation of a
10-48 plan and any contract.] The operation of a fire department or
10-49 provision of fire-fighting services is an essential public
10-50 necessity, and a district may discontinue any and all services,
10-51 including water and sewer service, to any person who fails to
10-52 timely pay fire department service fees or any other assessment
10-53 adopted by the district to support the fire department or the
10-54 provision of fire-fighting services.
10-55 SECTION 31. Section 51.748, Water Code, is amended to read
10-56 as follows:
10-57 Sec. 51.748. DIVISION OF ORIGINAL DISTRICT WITH NO
10-58 OUTSTANDING INDEBTEDNESS. (a) An original district [heretofore]
10-59 created and governed by the provisions of this chapter (an
10-60 "original district") that does not have any outstanding
10-61 indebtedness secured by the taxes or net revenues of an original
10-62 district may divide into two or more districts as provided by
10-63 Sections 51.749 through 51.758 of this code; provided, however, no
10-64 division shall occur that would result in the creation of a
10-65 district of less than 100 acres in size. Upon petition of any
10-66 landowner or upon the board's own motion, the board may consider a
10-67 proposal to divide the original district.
10-68 (b) A district that[:]
10-69 [(1) is located in two or more counties;]
11-1 [(2) is within the jurisdiction of two river
11-2 authorities, one of which has issued an interbasin transfer permit
11-3 to a city which provides the district's water supply;]
11-4 [(3) has not constructed any facilities or incurred
11-5 any indebtedness secured by taxes or net revenues; and]
11-6 [(4)] was created by division under Subsection (a)
11-7 is, for purposes of further division, an original district and may
11-8 be divided as provided by that subsection [Sections 51.749 through
11-9 51.758 of this code may divide into two or more districts as
11-10 provided by Sections 51.749 through 51.758 of this code; provided,
11-11 however, no division shall occur that would result in the creation
11-12 of a district of less than 100 acres in size. On petition of any
11-13 landowner or on the board's own motion, the board may consider a
11-14 proposal to divide the district].
11-15 SECTION 32. Section 53.063, Water Code, is amended to read
11-16 as follows:
11-17 Sec. 53.063. SUPERVISOR'S QUALIFICATIONS. To be qualified
11-18 for election as a supervisor, a person must be a registered voter
11-19 of the district [:]
11-20 [(1) a resident of the district;]
11-21 [(2) an owner of land in the district; and]
11-22 [(3) 21 years old or older at the time of his
11-23 election].
11-24 SECTION 33. Section 54.236, Water Code, is amended to read
11-25 as follows:
11-26 Sec. 54.236. STREET OR SECURITY LIGHTING. Subject to the
11-27 provisions of this section, a district may purchase, install
11-28 [accept], operate, and maintain street lighting or security
11-29 lighting within public utility easements or public rights-of-way
11-30 within the boundaries of the district. [Such street or security
11-31 lighting facilities must have been constructed by an owner or
11-32 developer of property within the district and must have been
11-33 required by a city as a condition to the city granting its consent
11-34 to the creation of the district pursuant to Section 54.016 of this
11-35 code.] A district may not issue bonds supported by ad valorem
11-36 taxes to pay for the purchase, installation, [development] and
11-37 maintenance of street or security lighting.
11-38 SECTION 34. Subchapter H, Chapter 54, Water Code, is amended
11-39 by adding Section 54.748 to read as follows:
11-40 Sec. 54.748. EXCLUSION OF LAND WITH OUTSTANDING BOND DEBT.
11-41 (a) This section applies only to a district that:
11-42 (1) has 50,000 acres or more;
11-43 (2) is located in an affected county as defined by
11-44 Section 16.341; and
11-45 (3) has outstanding bonds, warrants, or other
11-46 certificates of indebtedness secured in part by the land or other
11-47 property sought to be excluded under this section.
11-48 (b) The owner of land or other property in a district that
11-49 is pledged as partial security for outstanding bonds, warrants, or
11-50 other certificates of indebtedness of the district may petition the
11-51 district to exclude the owner's land or other property. The
11-52 petition must:
11-53 (1) describe by metes and bounds or lot and block
11-54 number any land to be excluded;
11-55 (2) describe any property other than land to be
11-56 excluded; and
11-57 (3) state clearly the particular grounds under
11-58 Subsection (c) on which exclusion is sought.
11-59 (c) Exclusion of land or other property under this section
11-60 may be made only on the grounds that:
11-61 (1) the district has never provided utility service,
11-62 has discontinued providing utility service, or has failed to
11-63 provide continuous and adequate utility service to the land or
11-64 other property described in the petition;
11-65 (2) the cost to the district of providing service to
11-66 the land or other property is so prohibitively expensive that it
11-67 effectively constitutes denial of service; or
11-68 (3) for a commercial development or a residential
11-69 development with lot sizes of less than two acres, the cost of
12-1 obtaining service from the district makes the development
12-2 economically infeasible but not necessarily prohibitively expensive
12-3 in the absence of other relevant factors.
12-4 (d) The board shall consider all engineering data and other
12-5 evidence presented and determine if the facts support an
12-6 affirmative finding on the grounds alleged for exclusion. If the
12-7 board finds in the affirmative, the board shall enter an order
12-8 excluding the land or other property and redefining the boundaries
12-9 of the district to reflect the exclusion. Not later than the 30th
12-10 day after the date of the board's order under this section, the
12-11 board shall:
12-12 (1) submit a copy of the exclusion order and a
12-13 detailed description of the land or other property excluded to the
12-14 executive director of the commission; and
12-15 (2) file a copy of the exclusion order in the deed
12-16 records of the county or counties in which the district is
12-17 situated.
12-18 (e) The exclusion of land or other property under this
12-19 section does not impair the rights of the holders of any
12-20 outstanding bonds, warrants, or other certificates of indebtedness
12-21 of the district.
12-22 (f) Excluded land or other property pledged as security for
12-23 any outstanding debt of the district remains pledged for its pro
12-24 rata share of that debt until final payment is made. The district
12-25 shall continue to levy and collect taxes on the excluded property
12-26 at the same rate levied on property remaining in the district until
12-27 the amount of taxes collected from the excluded property equals the
12-28 pro rata share of the district's debt outstanding at the time the
12-29 property was excluded attributable to the excluded property. The
12-30 taxes collected on the excluded property shall be applied only to
12-31 the payment of the excluded property's pro rata share of that debt.
12-32 The excluded land or other property's pro rata share of the debt
12-33 shall be a share of all outstanding principal and interest
12-34 determined by using a fraction the numerator of which is the
12-35 taxable value of the excluded land or other property on the date of
12-36 the exclusion and the denominator of which is the taxable value on
12-37 the date of the exclusion of all land and other property in the
12-38 district, including the excluded land or other property.
12-39 (g) The owner of any part of the excluded land or other
12-40 property at any time may pay in full the owner's share of the pro
12-41 rata share of the district's debt outstanding at the time the
12-42 property is excluded.
12-43 (h) After any land or other property is excluded under this
12-44 section, the district may issue any unissued additional debt
12-45 approved by the voters of the district before exclusion without
12-46 holding a new election. Additional debt issued after property is
12-47 excluded from the district may not be payable from and does not
12-48 create a lien against the taxable value of the excluded property.
12-49 SECTION 35. Section 54.772(1), Water Code, is amended to
12-50 read as follows:
12-51 (1) "Recreational facilities" means parks,
12-52 landscaping, parkways, greenbelts, sidewalks, trails, public
12-53 right-of-way beautification projects, and recreational equipment
12-54 and facilities. The term includes associated street and security
12-55 lighting.
12-56 SECTION 36. Section 54.774(a), Water Code, is amended to
12-57 read as follows:
12-58 (a) A district may not issue bonds supported by ad valorem
12-59 taxes to pay for the development and maintenance of recreational
12-60 facilities or street lighting.
12-61 SECTION 37. Section 57.092(a), Water Code, is amended to
12-62 read as follows:
12-63 (a) The district may enter into all necessary and proper
12-64 contracts and employ all persons and means necessary to purchase,
12-65 acquire, build, construct, complete, carry out, maintain, protect,
12-66 and in case of necessity, add to and rebuild, all works and
12-67 improvements [within the district] necessary or proper to fully
12-68 accomplish a reclamation plan lawfully adopted for the district.
12-69 SECTION 38. Subchapter D, Chapter 51, Water Code, is amended
13-1 by adding Section 51.131 to read as follows:
13-2 Sec. 51.131. PENALTY FOR VIOLATION OF REGULATION. A person
13-3 who violates a regulation adopted by a district under this chapter
13-4 or other law commits an offense. An offense under this section is
13-5 a Class C misdemeanor.
13-6 SECTION 39. Section 661.001(4), Government Code, is amended
13-7 to read as follows:
13-8 (4) "State agency" means:
13-9 (A) a board, commission, department, or other
13-10 agency in the executive branch of state government created by the
13-11 constitution or a statute of the state;
13-12 (B) an institution of higher education as
13-13 defined by Section 61.003, Education Code;
13-14 (C) [a river authority;]
13-15 [(D)] a legislative agency, but not either house
13-16 or a member of the legislature; or
13-17 (D) [(E)] the supreme court, the court of
13-18 criminal appeals, a court of appeals, or a state judicial agency.
13-19 SECTION 40. Article 1112, Revised Statutes, is amended by
13-20 adding Section 3 to read as follows:
13-21 Sec. 3. A municipality may sell to a water district
13-22 operating under the authority of Section 59, Article XVI, Texas
13-23 Constitution, a water or sewer system owned by the municipality
13-24 without an election as required by Section 1.
13-25 SECTION 41. Sections 49.072, 54.103, and 60.350, Water Code,
13-26 are repealed.
13-27 SECTION 42. (a) The repeal by this Act of Section 60.350,
13-28 Water Code, does not affect the applicability of Section 49.181,
13-29 Water Code, to bonds with regard to which an application and report
13-30 were submitted to the Texas Natural Resource Conservation
13-31 Commission under Section 49.181(b), Water Code, before the
13-32 effective date of this Act. Those bonds are governed by Section
13-33 49.181, Water Code, and Section 60.350, Water Code, continues in
13-34 effect as to those bonds for that purpose.
13-35 (b) The repeal by this Act of Section 60.350, Water Code,
13-36 does not affect the applicability of Section 49.183, Water Code, to
13-37 bonds issued before the effective date of this Act. Those bonds
13-38 are governed by Section 49.183, Water Code, and Section 60.350,
13-39 Water Code, continues in effect as to those bonds for that purpose.
13-40 (c) The change in law made by this Act to Section 51.748,
13-41 Water Code, applies only to divisions of districts as provided by
13-42 Section 51.748, Water Code, for which the appropriate board orders
13-43 an election on or after the effective date of this Act. The
13-44 division of a district for which the board ordered an election
13-45 before the effective date of this Act is governed by the law as it
13-46 existed immediately before the effective date of this Act, and that
13-47 law is continued in existence for that purpose.
13-48 SECTION 43. This Act takes effect September 1, 1999.
13-49 SECTION 44. The importance of this legislation and the
13-50 crowded condition of the calendars in both houses create an
13-51 emergency and an imperative public necessity that the
13-52 constitutional rule requiring bills to be read on three several
13-53 days in each house be suspended, and this rule is hereby suspended.
13-54 * * * * *