By Lewis of Orange                                    H.B. No. 2332
         76R4613 MI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the administration and consolidation of drainage
 1-3     districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 56.061, Water Code, is amended to read as
 1-6     follows:
 1-7           Sec. 56.061.  CREATION OF BOARD.  (a)  A district is governed
 1-8     by a board of three directors unless special law provides
 1-9     otherwise.
1-10           (b)  When a district is established, the commissioners court
1-11     shall appoint three directors for the district to serve until
1-12     permanent directors are elected.
1-13           SECTION 2.  Section 56.064(a), Water Code, is amended to read
1-14     as follows:
1-15           (a)  For any district in which special law requires that
1-16     directors be appointed, except when the special law otherwise
1-17     provides, on [On] petition of a majority of the real property
1-18     taxpayers of a district requesting an election of district
1-19     directors, the commissioners court shall immediately order an
1-20     election to be held at the earliest legal time.  The election shall
1-21     be held as other elections under Chapter 49.
1-22           SECTION 3.  Section 56.0641, Water Code, is amended to read
1-23     as follows:
1-24           Sec. 56.0641.  ELECTION PROCEDURES.  (a)  In those districts
 2-1     referred to in Subsection (b) [(e)] of Section 56.064, until
 2-2     otherwise ordered by the board of directors, the three persons
 2-3     receiving the highest number of votes at each election are elected.
 2-4     By order made before the 60th day preceding an election for
 2-5     directors, the board of directors in those districts referred to in
 2-6     Subsection (b) [(e)] of Section 56.064 may order that the election
 2-7     of directors for that district shall be by position or place,
 2-8     designated as Place No. 1, Place No. 2, and Place No. 3.  The order
 2-9     shall designate the place numbers in relation to the directors then
2-10     in office, and these place designations shall be observed in all
2-11     future elections.  The person receiving the highest number of votes
2-12     for each position or place is elected.  Once the board of directors
2-13     has adopted the place system for election, neither that board nor
2-14     their successors may rescind the action.
2-15           (b)  A person wishing to have his name printed on the ballot
2-16     as a candidate for director in those districts referred to in
2-17     Subsection (b) [(e)] of Section 56.064 shall file a signed
2-18     application with the secretary of the board of directors not later
2-19     than 5 p.m. of the 31st day preceding the election.
2-20           (c)  The board of directors in those districts referred to in
2-21     Subsection (b) [(e)] of Section 56.064 shall order the election,
2-22     appoint the election judges, canvass the returns, and declare the
2-23     results of the election.  In other respects, the procedures for
2-24     conducting the election and for voting are as specified in the
2-25     Texas Election Code.  The expenses of holding the election shall be
2-26     paid out of the construction and maintenance fund of the district.
2-27           SECTION 4.  Section 56.0642, Water Code, is amended to read
 3-1     as follows:
 3-2           Sec. 56.0642.  APPLICABILITY TO SPECIAL LAW DISTRICTS.
 3-3     Subsection (b) [(e)] of Section 56.064 and Section 56.0641 of this
 3-4     code apply to drainage districts created or governed by special law
 3-5     where the special law expressly adopts the provisions of Section
 3-6     56.064 of this code or its predecessor statute (Article 8119,
 3-7     Revised Civil Statutes of Texas, 1925) or repeats its provisions,
 3-8     without change in substance, as those provisions existed at the
 3-9     time the special law was enacted;  but they do not apply to any
3-10     district established, reestablished, or otherwise affected by
3-11     special law where the special law contains specific provisions
3-12     relating to the method of selecting the governing body of the
3-13     district which were at variance with the provisions of Section
3-14     56.064 of this code or its predecessor at the time the special law
3-15     was enacted.
3-16           SECTION 5.  Section 56.082(a), Water Code, is amended to read
3-17     as follows:
3-18           (a)  Except as otherwise provided in this chapter, the
3-19     commissioners court has exclusive jurisdiction to hear and
3-20     determine:
3-21                 (1)  contests and objections to creating a district;
3-22                 (2)  matters relating to creating a district; and
3-23                 (3)  all proceedings of a district during its
3-24     organization [after it is organized].
3-25           SECTION 6.  Section 56.123(a), Water Code, is amended to read
3-26     as follows:
3-27           (a)  After the board [commissioners court] authorizes bonds
 4-1     to be issued, the board may make changes in the district or its
 4-2     improvements which will be an advantage to the district but which
 4-3     will not increase the cost of the proposed work beyond the amount
 4-4     of bonds authorized.
 4-5           SECTION 7.  Sections 56.124(a) and (b), Water Code, are
 4-6     amended to read as follows:
 4-7           (a)  If the board decides that changes or additions in the
 4-8     preliminary survey would be of advantage to the district but would
 4-9     necessitate issuing additional bonds of the district, it shall
4-10     certify to the commission [commissioners court] the need for
4-11     additional bond authorization and transmit the certification with
4-12     maps and profiles prepared by the district engineer showing the
4-13     changes and their estimated cost.
4-14           (b)  At the first regular meeting after the documents are
4-15     filed, the board [commissioners court] shall give notice of an
4-16     election to determine whether or not the changes and improvements
4-17     should be made and shall order the election held within the time
4-18     and the returns made as provided in the original election.
4-19           SECTION 8.  Section 56.125(b), Water Code, is amended to read
4-20     as follows:
4-21           (b)  After the engineer's report is approved or modified by
4-22     the commission [commissioners court], the board [court] shall order
4-23     an election to be held in the district at the earliest legal time.
4-24     The only proposition that may be submitted at the election is
4-25     whether or not the district will construct additional improvements
4-26     and pay for them with funds currently available.  A majority of
4-27     those persons voting at the election must approve the proposition
 5-1     for it to carry.
 5-2           SECTION 9.  Section 56.135, Water Code, is amended to read as
 5-3     follows:
 5-4           Sec. 56.135.  INTEREST IN DRAINAGE CONTRACT.  A county judge,
 5-5     county commissioner, director of the board [drainage commissioner],
 5-6     or drainage engineer who becomes interested in any contract for
 5-7     construction of any work by the district or in any fee paid by the
 5-8     district from which he will receive money, consideration, or other
 5-9     thing of value, upon conviction is punishable by confinement in the
5-10     county jail for not less than six months nor more than one year.
5-11           SECTION 10.  Section 56.141(c), Water Code, is amended to
5-12     read as follows:
5-13           (c)  Unless an agreement is reached with the applicants, the
5-14     board [commissioners] may authorize the connection on condition
5-15     that the applicant first pay to the construction and maintenance
5-16     fund an amount of money which bears the same ratio to the cost of
5-17     the original canal or drain from the point of connection to its
5-18     outlet as the water to be emptied into the canal or drain by the
5-19     connecting drains bears to the water then flowing into and being
5-20     carried by the original canal or drain as estimated by the
5-21     engineer.
5-22           SECTION 11.  Section 56.142, Water Code, is amended to read
5-23     as follows:
5-24           Sec. 56.142.  ENLARGEMENT OF CANALS, DRAINS, AND OTHER
5-25     OUTLETS.  (a)  If the engineer's report indicates that the capacity
5-26     of the canals, drains, or outlets of the district are insufficient
5-27     to carry the excess water that would be discharged into them by
 6-1     connecting drains or that the additional discharge of water will
 6-2     endanger the canals and drains or the lands and property adjacent
 6-3     to them, the board [commissioners court in the county in which the
 6-4     district is located] may give the applicant permission to construct
 6-5     connecting drains and secure the desired outlet on condition that
 6-6     the applicant make necessary enlargements of the canals and drains
 6-7     of the district at the applicant's own expense.  The increased
 6-8     capacity of the canals of the district shall be sufficient to carry
 6-9     any increase of water caused by the connection without danger to
6-10     canals and drains or lands adjacent to them.
6-11           (b)  The engineer shall supervise and direct the enlargement
6-12     of the canals and drains, and after the work is completed to his
6-13     satisfaction, the engineer shall report to the board [commissioners
6-14     court] under his official certificate.  The report shall show:
6-15                 (1)  the kind of work done;
6-16                 (2)  the extent of the work;
6-17                 (3)  the new capacity to be sufficient to carry excess
6-18     water from the connecting drain;
6-19                 (4)  the number of days spent by the engineer
6-20     supervising the work; and
6-21                 (5)  the amount due to the engineer for his services.
6-22           (c)  On approving the engineer's report, the board
6-23     [commissioners court] shall issue an order authorizing the
6-24     connections to be made with the canals and drains on payment of the
6-25     amount due to the engineer as shown by the engineer's report and
6-26     shall order the applicant to pay the engineer's salary.
6-27           SECTION 12.  Subchapter K, Chapter 56, Water Code, is amended
 7-1     to read as follows:
 7-2                  SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
 7-3           Sec. 56.801.  CONSOLIDATION OF DISTRICTS.  Two or more
 7-4     districts governed by this chapter may consolidate into one
 7-5     district as provided by this subchapter.
 7-6           Sec. 56.802.  CONSOLIDATION BY AGREEMENT.  (a)  The boards of
 7-7     the districts proposed to be consolidated may initiate
 7-8     consolidation.
 7-9           (b)  The board of each district proposed to be consolidated
7-10     must agree on the terms and conditions of consolidation.  The
7-11     consolidation agreement may include adoption of a name for the
7-12     consolidated district and designation of election precincts for the
7-13     consolidated district.  After the boards have agreed to the terms
7-14     and conditions of consolidation, the boards jointly shall order an
7-15     election to be held in each district to determine whether the
7-16     districts should be consolidated.
7-17           Sec. 56.803.  CONSOLIDATION BY PETITION.  (a)  Consolidation
7-18     may be initiated by a petition requesting that the districts be
7-19     consolidated.
7-20           (b)  The petition must be signed by a number of qualified
7-21     voters in each district proposed to be consolidated that is equal
7-22     to at least five percent of the number of votes cast in the
7-23     district in the most recent gubernatorial general election.  There
7-24     must be one petition for each district proposed to be consolidated.
7-25     A qualified voter may sign only the petition for  the district in
7-26     which the voter resides.
7-27           (c)  The petitions shall be filed simultaneously with the
 8-1     secretary of each district proposed to be consolidated.
 8-2           (d)  A district's board shall determine whether the petition
 8-3     presented to that district meets the requirements of Subsection (b)
 8-4     and shall notify the boards of each other district proposed to be
 8-5     consolidated whether the petition meets the requirements of
 8-6     Subsection (b).
 8-7           (e)  If the petitions meet the requirements of Subsection (b)
 8-8     in all districts proposed to be consolidated, the boards of the
 8-9     districts proposed to be consolidated shall:
8-10                 (1)  issue a joint order for an election to be held on
8-11     the same day in each district to determine whether the districts
8-12     should be consolidated; and
8-13                 (2)  give notice of the election in the manner provided
8-14     by law for other elections.
8-15           Sec. 56.804.  TIME OF HOLDING ELECTION; COST OF ELECTION.
8-16     (a) The election shall be held on a uniform election day in January
8-17     or May.
8-18           (b)  The election date selected must provide sufficient time
8-19     for the preparation of the necessary voter registration lists for
8-20     each district.
8-21           (c)  Each district proposed to be consolidated is responsible
8-22     for holding the election in that district and for the cost of the
8-23     election in that district.
8-24           Sec. 56.805.  BALLOT.  The ballot in the election shall be
8-25     printed to permit voting for or against the proposition:
8-26     "Consolidation of ___________ (names of districts to be
8-27     consolidated) into a single drainage district."
 9-1           Sec. 56.806.  CANVASS; RESULT.  (a)  The board of each
 9-2     district proposed to be consolidated shall canvass the returns of
 9-3     the election held in that district.  The board of each district
 9-4     shall publish the results for that district.
 9-5           (b)  If the majority of votes cast in each district favor the
 9-6     consolidation, the districts become one district and are governed
 9-7     as one district.
 9-8           (c)  If the proposition does not carry, another election for
 9-9     consolidation may not be held in any district that was proposed to
9-10     be consolidated for at least two years after the results of the
9-11     election are declared.
9-12           Sec. 56.807.  GOVERNING CONSOLIDATED DISTRICTS; ELECTION OF
9-13     DIRECTORS.  (a)  When two or more districts are consolidated, they
9-14     become one district and are governed as one district.
9-15           (b)  Until the directors of the consolidated district are
9-16     elected and qualify, the directors of each district shall continue
9-17     to act jointly as directors of the consolidated district.  A
9-18     vacancy on the joint boards occurring before the permanent
9-19     directors of the consolidated district are elected may not be
9-20     filled unless the number of members on the joint board is three or
9-21     fewer.  If the number of members on the joint board is reduced to
9-22     three or fewer, the consolidated district shall be governed by
9-23     three directors.  If there are fewer than three directors,
9-24     vacancies shall be filled in the same manner as vacancies on
9-25     elected boards until there are three directors.
9-26           (c)  The joint board shall immediately order an election of
9-27     directors of the consolidated district to be held on the next
 10-1    available uniform election date as provided for election of
 10-2    directors under Chapter 49.
 10-3          (d)  The consolidation agreement may provide that the
 10-4    directors of the original districts continue to act jointly as
 10-5    directors of the consolidated district until the next election.
 10-6    The agreement may name persons to serve as directors of the
 10-7    consolidated district until the next election if all directors of
 10-8    the original districts agree to resign.
 10-9          (e)  The joint board of the consolidated district shall
10-10    approve the bond of each new director.
10-11          (f)  If any of the consolidated districts were operating
10-12    under Article XVI, Section 59 of the Texas Constitution at the time
10-13    the districts were consolidated, the consolidated district shall
10-14    operate under Article XVI, Section 59 of the Texas Constitution,
10-15    and limitations imposed by Article III, Section 52 of the Texas
10-16    Constitution and this chapter on debts to be incurred and taxes to
10-17    be levied does not apply to that district unless, not later than
10-18    the 60th day after the districts are consolidated, the board of
10-19    directors of the consolidated district adopts a resolution that the
10-20    consolidated district shall operate under Article III, Section 52
10-21    of the Texas Constitution.
10-22          Sec. 56.808.  TITLE TO PROPERTY; ASSUMPTION OF DEBT.  (a)
10-23    Title to all property of the consolidating districts vests in the
10-24    consolidated district.  The consolidated district assumes and is
10-25    liable for the outstanding indebtedness of the consolidating
10-26    districts.
10-27          (b)  All enforceable contract rights held or owned by a
 11-1    consolidating district are owned and held by the consolidated
 11-2    district.  The consolidated district is liable for contractual
 11-3    obligations of a consolidating district.
 11-4          Sec. 56.809.  VOTED BUT UNISSUED BONDS.  (a)  If any
 11-5    consolidating district has voted but unissued bonds, the
 11-6    consolidated district is authorized to issue the voted but unissued
 11-7    bonds in the name of the consolidated district and levy uniform tax
 11-8    on all taxable property in the consolidated district to pay for the
 11-9    bonds.
11-10          (b)  Any money received from the sale of bonds by a
11-11    consolidating district that has not been spent before the date of
11-12    consolidation may be spent by the consolidated district only on the
11-13    project for which the bonds were issued.
11-14          Sec. 56.810.  FISCAL YEAR; BUDGET.  (a)  A consolidated
11-15    district shall adopt a fiscal year.  The fiscal year may be
11-16    provided for in the consolidation agreement or adopted by the board
11-17    of the consolidated district after the consolidation election.
11-18          (b)  The fiscal year of each district that has been
11-19    consolidated ends on the last day of the month in which the
11-20    consolidation election was held.  Audits of each district that was
11-21    consolidated shall be prepared up to and through the last day of
11-22    the month in which the consolidation election was held.  The first
11-23    audit of the consolidated district shall be for the period
11-24    beginning on the first day of the month after the consolidation
11-25    election and ending on the last day of the fiscal year adopted for
11-26    the consolidated district.
11-27          (c)  A budget shall be adopted for the period beginning on
 12-1    the first day of the month after the consolidation election and
 12-2    continuing through the end of the fiscal year adopted for the
 12-3    consolidated district.
 12-4          [Sec. 56.801.  PETITION.  Consolidation is initiated by a
 12-5    petition requesting an election on the question.  The petition must
 12-6    be signed by registered voters residing in either district proposed
 12-7    to be consolidated equal in number to at least five percent of the
 12-8    number of votes received in the district by all candidates in the
 12-9    most recent gubernatorial general election.  The petition must be
12-10    presented to the commissioners court.]
12-11          [Sec. 56.802.  ELECTION ORDER; NOTICE.  (a)  If the
12-12    commissioners court determines the petition meets the requirements
12-13    of Section 56.801, the commissioners court shall:]
12-14                [(1)  issue an order for an election to be held on the
12-15    same day in each district included in the proposed consolidated
12-16    district; and]
12-17                [(2)  give notice of the election.]
12-18          [(b)  The ballot in the election shall be printed to permit
12-19    voting for or against the proposition:  "Consolidation of
12-20    __________ (names of districts) into a single drainage district."]
12-21          [Sec. 56.803.  CANVASS; RESULT.  (a)  The commissioners court
12-22    shall canvass the returns of the election.  The commissioners shall
12-23    publish the results separately for each district.]
12-24          [(b)  If the majority of votes cast in each district favor
12-25    the consolidation, the commissioners court shall declare the
12-26    districts consolidated.]
12-27          [Sec. 56.804.  TITLE TO PROPERTY; ASSUMPTION OF DEBT.  Title
 13-1    to all property of the consolidating districts vests in the
 13-2    consolidated district.  The consolidated district assumes and is
 13-3    liable for the outstanding indebtedness of the consolidating
 13-4    districts.]
 13-5          SECTION 13.  Sections 56.070, 56.071, 56.072, 56.112, 56.117,
 13-6    56.118, 56.127, and 56.181, Water Code, are repealed.
 13-7          SECTION 14.  This Act takes effect September 1, 1999.
 13-8          SECTION 15.  The importance of this legislation and the
 13-9    crowded condition of the calendars in both houses create an
13-10    emergency and an imperative public necessity that the
13-11    constitutional rule requiring bills to be read on three several
13-12    days in each house be suspended, and this rule is hereby suspended.