1-1     By:  Lewis of Orange (Senate Sponsor - Armbrister)    H.B. No. 2332
 1-2           (In the Senate - Received from the House April 19, 1999;
 1-3     April 20, 1999, read first time and referred to Committee on
 1-4     Natural Resources; May 3, 1999, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 3, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the administration and consolidation of drainage
 1-9     districts.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 56.061, Water Code, is amended to read as
1-12     follows:
1-13           Sec. 56.061.  CREATION OF BOARD.  (a)  A district is governed
1-14     by a board of three directors unless special law provides
1-15     otherwise.
1-16           (b)  When a district is established, the commissioners court
1-17     shall appoint three directors for the district to serve until
1-18     permanent directors are elected.
1-19           SECTION 2.  Section 56.064(a), Water Code, is amended to read
1-20     as follows:
1-21           (a)  For any district in which special law requires that
1-22     directors be appointed, except when the special law otherwise
1-23     provides, on [On] petition of a majority of the real property
1-24     taxpayers of a district requesting an election of district
1-25     directors, the commissioners court shall immediately order an
1-26     election to be held at the earliest legal time.  The election shall
1-27     be held as other elections under Chapter 49.
1-28           SECTION 3.  Section 56.0641, Water Code, is amended to read
1-29     as follows:
1-30           Sec. 56.0641.  ELECTION PROCEDURES.  (a)  In those districts
1-31     referred to in Subsection (b) [(e)] of Section 56.064, until
1-32     otherwise ordered by the board of directors, the three persons
1-33     receiving the highest number of votes at each election are elected.
1-34     By order made before the 60th day preceding an election for
1-35     directors, the board of directors in those districts referred to in
1-36     Subsection (b) [(e)] of Section 56.064 may order that the election
1-37     of directors for that district shall be by position or place,
1-38     designated as Place No. 1, Place No. 2, and Place No. 3.  The order
1-39     shall designate the place numbers in relation to the directors then
1-40     in office, and these place designations shall be observed in all
1-41     future elections.  The person receiving the highest number of votes
1-42     for each position or place is elected.  Once the board of directors
1-43     has adopted the place system for election, neither that board nor
1-44     their successors may rescind the action.
1-45           (b)  A person wishing to have his name printed on the ballot
1-46     as a candidate for director in those districts referred to in
1-47     Subsection (b) [(e)] of Section 56.064 shall file a signed
1-48     application with the secretary of the board of directors not later
1-49     than 5 p.m. of the 31st day preceding the election.
1-50           (c)  The board of directors in those districts referred to in
1-51     Subsection (b) [(e)] of Section 56.064 shall order the election,
1-52     appoint the election judges, canvass the returns, and declare the
1-53     results of the election.  In other respects, the procedures for
1-54     conducting the election and for voting are as specified in the
1-55     Texas Election Code.  The expenses of holding the election shall be
1-56     paid out of the construction and maintenance fund of the district.
1-57           SECTION 4.  Section 56.0642, Water Code, is amended to read
1-58     as follows:
1-59           Sec. 56.0642.  APPLICABILITY TO SPECIAL LAW DISTRICTS.
1-60     Subsection (b) [(e)] of Section 56.064 and Section 56.0641 of this
1-61     code apply to drainage districts created or governed by special law
1-62     where the special law expressly adopts the provisions of Section
1-63     56.064 of this code or its predecessor statute (Article 8119,
1-64     Revised Civil Statutes of Texas, 1925) or repeats its provisions,
 2-1     without change in substance, as those provisions existed at the
 2-2     time the special law was enacted;  but they do not apply to any
 2-3     district established, reestablished, or otherwise affected by
 2-4     special law where the special law contains specific provisions
 2-5     relating to the method of selecting the governing body of the
 2-6     district which were at variance with the provisions of Section
 2-7     56.064 of this code or its predecessor at the time the special law
 2-8     was enacted.
 2-9           SECTION 5.  Section 56.082(a), Water Code, is amended to read
2-10     as follows:
2-11           (a)  Except as otherwise provided in this chapter, the
2-12     commissioners court has exclusive jurisdiction to hear and
2-13     determine:
2-14                 (1)  contests and objections to creating a district;
2-15                 (2)  matters relating to creating a district; and
2-16                 (3)  all proceedings of a district during its
2-17     organization [after it is organized].
2-18           SECTION 6.  Section 56.123(a), Water Code, is amended to read
2-19     as follows:
2-20           (a)  After the board [commissioners court] authorizes bonds
2-21     to be issued, the board may make changes in the district or its
2-22     improvements which will be an advantage to the district but which
2-23     will not increase the cost of the proposed work beyond the amount
2-24     of bonds authorized.
2-25           SECTION 7.  Sections 56.124(a) and (b), Water Code, are
2-26     amended to read as follows:
2-27           (a)  If the board decides that changes or additions in the
2-28     preliminary survey would be of advantage to the district but would
2-29     necessitate issuing additional bonds of the district, it shall
2-30     certify [to the commissioners court] the need for additional bond
2-31     authorization and file [transmit] the certification with maps and
2-32     profiles prepared by the district engineer showing the changes and
2-33     their estimated cost in the district office.
2-34           (b)  At the first regular meeting after the documents are
2-35     filed, the board [commissioners court] shall give notice of an
2-36     election to determine whether or not the changes and improvements
2-37     should be made and shall order the election held within the time
2-38     and the returns made as provided in the original election.
2-39           SECTION 8.  Section 56.125(b), Water Code, is amended to read
2-40     as follows:
2-41           (b)  After the engineer's report is approved or modified by
2-42     the board [commissioners court], the board [court] shall order an
2-43     election to be held in the district at the earliest legal time.
2-44     The only proposition that may be submitted at the election is
2-45     whether or not the district will construct additional improvements
2-46     and pay for them with funds currently available.  A majority of
2-47     those persons voting at the election must approve the proposition
2-48     for it to carry.
2-49           SECTION 9.  Section 56.135, Water Code, is amended to read as
2-50     follows:
2-51           Sec. 56.135.  INTEREST IN DRAINAGE CONTRACT.  A county judge,
2-52     county commissioner, director of the board [drainage commissioner],
2-53     or drainage engineer who becomes interested in any contract for
2-54     construction of any work by the district or in any fee paid by the
2-55     district from which he will receive money, consideration, or other
2-56     thing of value, upon conviction is punishable by confinement in the
2-57     county jail for not less than six months nor more than one year.
2-58           SECTION 10.  Section 56.141(c), Water Code, is amended to
2-59     read as follows:
2-60           (c)  Unless an agreement is reached with the applicants, the
2-61     board [commissioners] may authorize the connection on condition
2-62     that the applicant first pay to the construction and maintenance
2-63     fund an amount of money which bears the same ratio to the cost of
2-64     the original canal or drain from the point of connection to its
2-65     outlet as the water to be emptied into the canal or drain by the
2-66     connecting drains bears to the water then flowing into and being
2-67     carried by the original canal or drain as estimated by the
2-68     engineer.
2-69           SECTION 11.  Section 56.142, Water Code, is amended to read
 3-1     as follows:
 3-2           Sec. 56.142.  ENLARGEMENT OF CANALS, DRAINS, AND OTHER
 3-3     OUTLETS.  (a)  If the engineer's report indicates that the capacity
 3-4     of the canals, drains, or outlets of the district are insufficient
 3-5     to carry the excess water that would be discharged into them by
 3-6     connecting drains or that the additional discharge of water will
 3-7     endanger the canals and drains or the lands and property adjacent
 3-8     to them, the board [commissioners court in the county in which the
 3-9     district is located] may give the applicant permission to construct
3-10     connecting drains and secure the desired outlet on condition that
3-11     the applicant make necessary enlargements of the canals and drains
3-12     of the district at the applicant's own expense.  The increased
3-13     capacity of the canals of the district shall be sufficient to carry
3-14     any increase of water caused by the connection without danger to
3-15     canals and drains or lands adjacent to them.
3-16           (b)  The engineer shall supervise and direct the enlargement
3-17     of the canals and drains, and after the work is completed to his
3-18     satisfaction, the engineer shall report to the board [commissioners
3-19     court] under his official certificate.  The report shall show:
3-20                 (1)  the kind of work done;
3-21                 (2)  the extent of the work;
3-22                 (3)  the new capacity to be sufficient to carry excess
3-23     water from the connecting drain;
3-24                 (4)  the number of days spent by the engineer
3-25     supervising the work; and
3-26                 (5)  the amount due to the engineer for his services.
3-27           (c)  On approving the engineer's report, the board
3-28     [commissioners court] shall issue an order authorizing the
3-29     connections to be made with the canals and drains on payment of the
3-30     amount due to the engineer as shown by the engineer's report and
3-31     shall order the applicant to pay the engineer's salary.
3-32           SECTION 12.  Subchapter K, Chapter 56, Water Code, is amended
3-33     to read as follows:
3-34                  SUBCHAPTER K. CONSOLIDATION OF DISTRICTS
3-35           Sec. 56.801.  CONSOLIDATION OF DISTRICTS.  Two or more
3-36     districts governed by this chapter may consolidate into one
3-37     district as provided by this subchapter.
3-38           Sec. 56.802.  CONSOLIDATION BY AGREEMENT.  (a)  The boards of
3-39     the districts proposed to be consolidated may initiate
3-40     consolidation.
3-41           (b)  The board of each district proposed to be consolidated
3-42     must agree on the terms and conditions of consolidation.  The
3-43     consolidation agreement may include adoption of a name for the
3-44     consolidated district and designation of election precincts for the
3-45     consolidated district.  After the boards have agreed to the terms
3-46     and conditions of consolidation, the boards jointly shall order an
3-47     election to be held in each district to determine whether the
3-48     districts should be consolidated.
3-49           Sec. 56.803.  CONSOLIDATION BY PETITION.  (a)  Consolidation
3-50     may be initiated by a petition requesting that the districts be
3-51     consolidated.
3-52           (b)  The petition must be signed by a number of qualified
3-53     voters in each district proposed to be consolidated that is equal
3-54     to at least five percent of the number of votes cast in the
3-55     district in the most recent gubernatorial general election.  There
3-56     must be one petition for each district proposed to be consolidated.
3-57     A qualified voter may sign only the petition for  the district in
3-58     which the voter resides.
3-59           (c)  The petitions shall be filed simultaneously with the
3-60     secretary of each district proposed to be consolidated.
3-61           (d)  A district's board shall determine whether the petition
3-62     presented to that district meets the requirements of Subsection (b)
3-63     and shall notify the board of each other district proposed to be
3-64     consolidated whether the petition meets the requirements of
3-65     Subsection (b).
3-66           (e)  If the petitions meet the requirements of Subsection (b)
3-67     in all districts proposed to be consolidated, the boards of the
3-68     districts proposed to be consolidated shall:
3-69                 (1)  issue a joint order for an election to be held on
 4-1     the same day in each district to determine whether the districts
 4-2     should be consolidated; and
 4-3                 (2)  give notice of the election in the manner provided
 4-4     by law for other elections.
 4-5           Sec. 56.804.  TIME OF HOLDING ELECTION; COST OF ELECTION.
 4-6     (a) The election shall be held on a uniform election day in January
 4-7     or May.
 4-8           (b)  The election date selected must provide sufficient time
 4-9     for the preparation of the necessary voter registration lists for
4-10     each district.
4-11           (c)  Each district proposed to be consolidated is responsible
4-12     for holding the election in that district and for the cost of the
4-13     election in that district.
4-14           Sec. 56.805.  BALLOT.  The ballot in the election shall be
4-15     printed to permit voting for or against the proposition:
4-16     "Consolidation of ___________ (names of districts to be
4-17     consolidated) into a single drainage district."
4-18           Sec. 56.806.  CANVASS; RESULT.  (a)  The board of each
4-19     district proposed to be consolidated shall canvass the returns of
4-20     the election held in that district.  The board of each district
4-21     shall publish the results for that district.
4-22           (b)  If the majority of votes cast in each district favor the
4-23     consolidation, the districts become one district and are governed
4-24     as one district.
4-25           (c)  If the proposition does not carry, another election for
4-26     consolidation may not be held in any district that was proposed to
4-27     be consolidated for at least two years after the results of the
4-28     election are declared.
4-29           Sec. 56.807.  GOVERNING CONSOLIDATED DISTRICTS; ELECTION OF
4-30     DIRECTORS.  (a)  When two or more districts are consolidated, they
4-31     become one district and are governed as one district.
4-32           (b)  Until the directors of the consolidated district are
4-33     elected and qualify, the directors of each district shall continue
4-34     to act jointly as directors of the consolidated district.  A
4-35     vacancy on the joint boards occurring before the permanent
4-36     directors of the consolidated district are elected may not be
4-37     filled unless the number of members on the joint board is three or
4-38     fewer.  If the number of members on the joint board is reduced to
4-39     three or fewer, the consolidated district shall be governed by
4-40     three directors.  If there are fewer than three directors,
4-41     vacancies shall be filled in the same manner as vacancies on
4-42     elected boards until there are three directors.
4-43           (c)  The joint board shall immediately order an election of
4-44     directors of the consolidated district to be held on the next
4-45     available uniform election date as provided for election of
4-46     directors under Chapter 49.
4-47           (d)  The consolidation agreement may provide that the
4-48     directors of the original districts continue to act jointly as
4-49     directors of the consolidated district until the next election.
4-50     The agreement may name persons to serve as directors of the
4-51     consolidated district until the next election if all directors of
4-52     the original districts agree to resign.
4-53           (e)  The joint board of the consolidated district shall
4-54     approve the bond of each new director.
4-55           (f)  If any of the consolidated districts were operating
4-56     under Section 59, Article XVI, Texas Constitution, at the time the
4-57     districts were consolidated, the consolidated district shall
4-58     operate under Section 59, Article XVI, Texas Constitution, and
4-59     limitations imposed by Section 52, Article III, Texas Constitution,
4-60     and this chapter on debts to be incurred and taxes to be levied do
4-61     not apply to that district unless, not later than the 60th day
4-62     after the districts are consolidated, the board of directors of the
4-63     consolidated district adopts a resolution that the consolidated
4-64     district shall operate under Section 52, Article III, Texas
4-65     Constitution.
4-66           Sec. 56.808.  TITLE TO PROPERTY; ASSUMPTION OF DEBT.  (a)
4-67     Title to all property of the consolidating districts vests in the
4-68     consolidated district.  The consolidated district assumes and is
4-69     liable for the outstanding indebtedness of the consolidating
 5-1     districts.
 5-2           (b)  All enforceable contract rights held or owned by a
 5-3     consolidating district are owned and held by the consolidated
 5-4     district.  The consolidated district is liable for contractual
 5-5     obligations of a consolidating district.
 5-6           Sec. 56.809.  UNEXPENDED BOND PROCEEDS.  Any money received
 5-7     from the sale of bonds by a consolidating district that has not
 5-8     been spent before the date of consolidation may be spent by the
 5-9     consolidated district only on the project for which the bonds were
5-10     issued.
5-11           Sec. 56.810.  FISCAL YEAR; BUDGET.  (a)  A consolidated
5-12     district shall adopt a fiscal year.  The fiscal year may be
5-13     provided for in the consolidation agreement or adopted by the board
5-14     of the consolidated district after the consolidation election.
5-15           (b)  The fiscal year of each district that has been
5-16     consolidated ends on the last day of the month in which the
5-17     consolidation election was held.  Audits of each district that was
5-18     consolidated shall be prepared up to and through the last day of
5-19     the month in which the consolidation election was held.  The first
5-20     audit of the consolidated district shall be for the period
5-21     beginning on the first day of the month after the consolidation
5-22     election and ending on the last day of the fiscal year adopted for
5-23     the consolidated district.
5-24           (c)  A budget shall be adopted for the period beginning on
5-25     the first day of the month after the consolidation election and
5-26     continuing through the end of the fiscal year adopted for the
5-27     consolidated district.
5-28           [Sec. 56.801.  PETITION.  Consolidation is initiated by a
5-29     petition requesting an election on the question.  The petition must
5-30     be signed by registered voters residing in either district proposed
5-31     to be consolidated equal in number to at least five percent of the
5-32     number of votes received in the district by all candidates in the
5-33     most recent gubernatorial general election.  The petition must be
5-34     presented to the commissioners court.]
5-35           [Sec. 56.802.  ELECTION ORDER; NOTICE.  (a)  If the
5-36     commissioners court determines the petition meets the requirements
5-37     of Section 56.801, the commissioners court shall:]
5-38                 [(1)  issue an order for an election to be held on the
5-39     same day in each district included in the proposed consolidated
5-40     district; and]
5-41                 [(2)  give notice of the election.]
5-42           [(b)  The ballot in the election shall be printed to permit
5-43     voting for or against the proposition:  "Consolidation of
5-44     __________ (names of districts) into a single drainage district."]
5-45           [Sec. 56.803.  CANVASS; RESULT.  (a)  The commissioners court
5-46     shall canvass the returns of the election.  The commissioners shall
5-47     publish the results separately for each district.]
5-48           [(b)  If the majority of votes cast in each district favor
5-49     the consolidation, the commissioners court shall declare the
5-50     districts consolidated.]
5-51           [Sec. 56.804.  TITLE TO PROPERTY; ASSUMPTION OF DEBT.  Title
5-52     to all property of the consolidating districts vests in the
5-53     consolidated district.  The consolidated district assumes and is
5-54     liable for the outstanding indebtedness of the consolidating
5-55     districts.]
5-56           SECTION 13.  Sections 56.070, 56.071, 56.072, 56.073, 56.112,
5-57     56.117, 56.118, 56.127, and 56.181, Water Code, are repealed.
5-58           SECTION 14.  This Act takes effect September 1, 1999.
5-59           SECTION 15.  The importance of this legislation and the
5-60     crowded condition of the calendars in both houses create an
5-61     emergency and an imperative public necessity that the
5-62     constitutional rule requiring bills to be read on three several
5-63     days in each house be suspended, and this rule is hereby suspended.
5-64                                  * * * * *