By:  Brown                                            S.B. No. 1733
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the general powers and authority of water districts;
 1-2     providing a penalty.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 49.102, Water Code, is amended by adding
 1-5     a new Subsection (i) and redesignating existing Subsection (i) as
 1-6     Subsection (j) to read as follows:
 1-7           (i)  A district, at an election required under Subsection
 1-8     (a), may submit to the qualified voters of the district the
 1-9     proposition of whether a plan as authorized by Section 49.351
1-10     should be implemented or entered into by the district.
1-11           (j)  The provisions of this section shall not be applicable
1-12     to any district exercising the powers of Chapter 375, Local
1-13     Government Code, or any district created by a special Act of the
1-14     legislature that does not require a confirmation election.
1-15           SECTION 2.  Section 49.105, Water Code, is amended to read as
1-16     follows:
1-17           Sec. 49.105.  VACANCIES.  (a)  Except as otherwise provided
1-18     in this code, a vacancy [all vacancies] on the board and in other
1-19     offices shall be filled for the unexpired term by appointment of
1-20     the board not later than the 60th day after the date the vacancy
1-21     occurs.
1-22           (b)  If the board has not filled a vacancy by appointment
1-23     before the 61st day after the date the vacancy occurs, a petition,
1-24     signed by more than 10 percent of the registered voters of the
 2-1     district, requesting the board to fill the vacancy by appointment
 2-2     may be presented to the board.
 2-3           (c)  If the number of directors is reduced to fewer than a
 2-4     majority or if a vacancy continues beyond the 90th day after the
 2-5     date the vacancy occurs, the vacancy or vacancies shall be filled
 2-6     by appointment by the commission if the district is required by
 2-7     Section 49.181 to obtain commission approval of its bonds or by the
 2-8     county commissioners court if the district was created by the
 2-9     county commissioners court, regardless of whether a petition has
2-10     been presented to the board under Subsection (b).  An appointed
2-11     director shall serve for the unexpired term of the director he or
2-12     she is replacing.
2-13           (d) [(c)]  In the event of a failure to elect one or more
2-14     members of the board of a district resulting from the absence of,
2-15     or failure to vote by, the qualified voters in the district, the
2-16     current members of the board holding the positions not filled at
2-17     such election shall be deemed to have been reelected and shall
2-18     serve an additional term of office.
2-19           SECTION 3.  Section 49.155, Water Code, is amended to read as
2-20     follows:
2-21           Sec. 49.155.  PAYMENT [REPAYMENT] OF EXPENSES.  (a)  The
2-22     district may pay out of bond proceeds or other available funds of
2-23     the district all [costs and] expenses reasonable and necessary to
2-24     effect the issuance, sale, and delivery of bonds as determined by
2-25     the board, [necessarily incurred in the organization and operation
2-26     of a district during creation and construction periods] including,
 3-1     but not limited to, the following:
 3-2                 (1)  interest during construction [organizational,
 3-3     administrative, and operating expenses];
 3-4                 (2)  capitalized interest not to exceed three years'
 3-5     interest;
 3-6                 (3)  reasonable and necessary reserve funds not to
 3-7     exceed two years' interest;
 3-8                 (4)  interest on funds advanced to the district;
 3-9                 (5)  financial advisor, bond counsel, attorney, and
3-10     other consultant fees;
3-11                 (6)  paying agent, registrar, and escrow agent fees;
3-12                 (7)  right-of-way acquisition;
3-13                 (8)  underwriter's discounts or premiums;
3-14                 (9)  engineering fees;
3-15                 (10)  commission and attorney general fees;
3-16                 (11)  printing costs;
3-17                 (12)  all organizational, administrative, and operating
3-18     costs during creation and construction periods; and
3-19                 (13)  the cost of investigation and making plans[;]
3-20                 [(3)  the cost of the engineer's report;]
3-21                 [(4)  legal fees; and]
3-22                 [(5)  any other incidental expenses].
3-23           (b)  For purposes of this section, construction periods shall
3-24     mean any periods during which the district is constructing its
3-25     facilities or there is construction by third parties of above
3-26     ground improvements within the district, but in no event longer
 4-1     than five years.
 4-2           (c)  The district may reimburse any person for money advanced
 4-3     for the purposes in Subsection (a) and may be charged interest on
 4-4     such funds.
 4-5           (d)  These payments may be made from money obtained from the
 4-6     issuance of notes or the sale of bonds issued by the district or
 4-7     out of maintenance taxes or other revenues of the district.
 4-8           SECTION 4.  Section 49.211, Water Code, is amended by adding
 4-9     Subsection (e) to read as follows:
4-10           (e)  A district that is authorized by law to engage in
4-11     drainage or flood control activities may include among the
4-12     district's land, works, improvements, facilities, plants,
4-13     equipment, and appliances the following areas and projects
4-14     associated with drainage or flood control projects of the district:
4-15                 (1)  stormwater retention or detention lands and
4-16     projects;
4-17                 (2)  sedimentation basins;
4-18                 (3)  floodplain and wetlands mitigation lands and
4-19     projects;
4-20                 (4)  habitat reconstruction or restoration lands and
4-21     projects; and
4-22                 (5)  any temporary, permanent, constant, or variable
4-23     level impoundments of water related to projects in this subsection.
4-24           SECTION 5.  Section 49.212, Water Code, is amended by
4-25     amending Subsection (a) and adding Subsection (e) to read as
4-26     follows:
 5-1           (a)  A district may adopt and enforce all necessary charges,
 5-2     mandatory fees, or rentals, in addition to taxes, for providing or
 5-3     making available any district facility or service, including
 5-4     fire-fighting activities provided under Section 49.351.
 5-5           (e)  Chapter 2007, Government Code, does not apply to a tax
 5-6     levied, a standby fee imposed, or a charge, fee, or rental adopted
 5-7     or enforced by a district under this chapter, any other chapter of
 5-8     this code, or Chapter 395, Local Government Code.
 5-9           SECTION 6.  Section 49.226, Water Code, is amended to read as
5-10     follows:
5-11           Sec. 49.226.  SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
5-12     PERSONAL PROPERTY.  (a)  Any personal property valued at more than
5-13     $300 or any land or interest in land owned by the district which is
5-14     found by the board to be surplus and is not needed by the district
5-15     may be sold under order of the board either by public or private
5-16     sale, or the land, interest in land, or personal property may be
5-17     exchanged for other land, interest in land, or personal property
5-18     needed by the district.  Except as provided in Subsection (b),
5-19     land, interest in land, or personal property must be exchanged for
5-20     like fair market value, which value may be determined by the
5-21     district.
5-22           (b)  Any property dedicated to or acquired by the district
5-23     without expending district funds may be abandoned or released to
5-24     the original grantor, the grantor's heirs, assigns, executors, or
5-25     successors upon terms and conditions deemed necessary or
5-26     advantageous to the district and without receiving compensation for
 6-1     such abandonment or release.  District property may also be
 6-2     abandoned, released, exchanged, or transferred to another district,
 6-3     municipality, county, countywide agency, or authority upon terms
 6-4     and conditions deemed necessary or advantageous to the district.
 6-5     Narrow strips of property resulting from boundary or surveying
 6-6     conflicts or similar causes, or from insubstantial encroachments by
 6-7     abutting property owners, or property of larger configuration that
 6-8     has been subject to encroachments by abutting property owners for
 6-9     more than 25 years may be abandoned, released, exchanged, or
6-10     transferred to such abutting owners upon terms and conditions
6-11     deemed necessary or advantageous to the district.  Chapter 272,
6-12     Local Government Code, shall not apply to this section
6-13     [subsection].
6-14           (c)  Before either a public or a private sale of real
6-15     property [not required by the district], the district shall give
6-16     notice of the intent to sell by publishing notice once a week for
6-17     two consecutive weeks in one or more newspapers with general
6-18     circulation in the district.
6-19           (d)  If the district has outstanding bonds secured by a
6-20     pledge of tax revenues, the proceeds of the sale of property [not
6-21     required by the district] shall be applied to retire outstanding
6-22     bonds of the district [when required by the district's applicable
6-23     bond resolutions].
6-24           (e)  If the district does not have any outstanding bonds, the
6-25     proceeds derived from the sale of real or [the] personal property
6-26     [or land not required by the district] may be used for any lawful
 7-1     purpose.
 7-2           SECTION 7.  Subchapter H, Chapter 49, Water Code, is amended
 7-3     by adding Section 49.233 to read as follows:
 7-4           Sec. 49.233.  PROHIBITION OF CERTAIN PRIVATE ON-SITE
 7-5     FACILITIES.  (a)  A district that operates a wastewater collection
 7-6     system to serve land within its boundaries by rule may prohibit the
 7-7     installation of private on-site wastewater holding or treatment
 7-8     facilities on land within the district.
 7-9           (b)  A district that prohibits installation as described by
7-10     Subsection (a) shall agree to reimburse a particular tract the
7-11     costs of connecting the tract to the district's wastewater
7-12     collection system if the distance along public rights-of-way or
7-13     utility easements from the nearest  point of the district's
7-14     wastewater collection system to the boundary line of the particular
7-15     tract requiring wastewater collection services is 1,000 feet or
7-16     more, subject to commission rules regarding reimbursement of those
7-17     costs.
7-18           SECTION 8.  Subsection (c), Section 49.271, Water Code, is
7-19     amended to read as follows:
7-20           (c)  The district may adopt minimum criteria for the
7-21     qualifications of bidders on its construction contracts and for
7-22     sureties issuing payment and performance bonds.  For construction
7-23     contracts over $25,000, the district shall require a person who
7-24     bids to submit a certified or cashier's check on a responsible bank
7-25     in the state equal to at least two percent of the total amount of
7-26     the bid, or a bid bond of at least two percent of the total amount
 8-1     of the bid issued by a surety legally authorized to do business in
 8-2     this state, as a good faith deposit to ensure execution of the
 8-3     contract.  If the successful bidder fails or refuses to enter into
 8-4     a proper contract with the district, or fails or refuses to furnish
 8-5     the payment and performance bonds [bond] required by law, the
 8-6     bidder forfeits the deposit.  The payment, performance, and bid
 8-7     bonding requirements of this subsection do not apply to contracts
 8-8     for the purchase of equipment, materials, and machinery not
 8-9     otherwise incorporated into a construction project.
8-10           SECTION 9.  Subsections (i) and (j), Section 49.273, Water
8-11     Code, are amended to read as follows:
8-12           (i)  If changes in plans or specifications are necessary
8-13     after the performance of the contract is begun or if it is
8-14     necessary to decrease or increase the quantity of the work to be
8-15     performed or of the materials, equipment, or supplies to be
8-16     furnished, the board may approve change orders making the changes.
8-17     The original contract price may not be increased by more than 10
8-18     percent of the aggregate of those change orders.  Additional change
8-19     orders [Change orders to contracts] may be issued only as a result
8-20     of unanticipated conditions encountered during construction,
8-21     repair, or renovation or changes in regulatory criteria or to
8-22     facilitate project coordination with other political entities.
8-23           (j)  The board is not required to advertise or seek
8-24     competitive bids for the repair of district facilities if the scope
8-25     or extent of the repair work cannot be readily ascertained or if
8-26     the nature of the repair work does not readily lend itself to
 9-1     competitive bidding [by the district's operator if the cost of the
 9-2     repair is less than or equal to the advertising requirements of
 9-3     this section].
 9-4           SECTION 10.  Subchapter I, Chapter 49, Water Code, is amended
 9-5     by adding Section 49.279 to read as follows:
 9-6           Sec. 49.279.  PREVAILING WAGE RATES.  In addition to the
 9-7     alternative procedures provided by Section 2258.022, Government
 9-8     Code:
 9-9                 (1)  a district located wholly or partially within one
9-10     or more municipalities or within the extraterritorial jurisdiction
9-11     of one or more municipalities may establish its prevailing wage
9-12     rate for  public works by adopting the prevailing wage rate of:
9-13                       (A)  one of the municipalities; or
9-14                       (B)  the county in which the district is located;
9-15     and
9-16                 (2)  a district not located wholly or partially within
9-17     the extraterritorial jurisdiction of any municipality may establish
9-18     the district's prevailing wage rate by adopting the wage rate of
9-19     the county in which the district is located.
9-20           SECTION 11.  Subsection (a), Section 49.304, Water Code, is
9-21     amended to read as follows:
9-22           (a)  If the board determines that an exclusion hearing should
9-23     be held as provided in Section 49.303(a) or (c), or if a written
9-24     petition requesting an exclusion hearing is filed with the
9-25     secretary of the board as provided in Section 49.303(b) [49.303],
9-26     the board shall give notice of the time and place of a hearing to
 10-1    announce its own conclusions relating to land or other property to
 10-2    be excluded and to receive petitions for exclusion of land or other
 10-3    property.
 10-4          SECTION 12.  Subchapter J, Chapter 49, Water Code, is amended
 10-5    by adding Section 49.315 to read as follows:
 10-6          Sec. 49.315.  ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
 10-7    (a)  A district may add or exclude land in accordance with this
 10-8    subchapter:
 10-9                (1)  after a district is created by order of the
10-10    commission or another governmental entity or by special Act of the
10-11    legislature; and
10-12                (2)  before an election is held as required by Section
10-13    49.102.
10-14          (b)  If land is added or excluded as provided by this
10-15    section, the election to confirm the district required by Section
10-16    49.102 shall be to confirm the district as modified.
10-17          SECTION 13.  Section 49.327, Water Code, is amended to read
10-18    as follows:
10-19          Sec. 49.327.  ASSETS ESCHEAT TO STATE.  (a) Upon the
10-20    dissolution of a district by the commission, all assets of the
10-21    district shall escheat to the State of Texas.  The assets shall be
10-22    administered by the comptroller and shall be disposed of in the
10-23    manner provided by Chapter 74, Property Code.
10-24          (b)  Title 6, Property Code, does not apply to any personal
10-25    property held by a district that has not been dissolved by order of
10-26    the commission.
 11-1          SECTION 14.  Subsections (a), (b), (c), and (g) through (j),
 11-2    Section 49.351, Water Code, are amended to read as follows:
 11-3          (a)  A district providing potable water or sewer service to
 11-4    household users may establish, operate, and maintain a fire
 11-5    department to perform all fire-fighting activities within the
 11-6    district as provided in this subchapter and may issue bonds or
 11-7    impose a mandatory fee, with voter approval, [bonds] for financing
 11-8    a plan approved in accordance with this section, [the establishment
 11-9    of the fire department] including the construction and purchase of
11-10    necessary buildings, facilities, land, and equipment and the
11-11    provision of an adequate water supply.
11-12          (b)  After approval of the district electors of a plan to
11-13    operate, [or] jointly operate, or jointly fund the operation of a
11-14    fire department and after complying with Subsections (g), (h), and
11-15    (i), the district or districts shall provide an adequate system and
11-16    water supply for fire-fighting purposes, may purchase necessary
11-17    land, may construct and purchase necessary buildings, facilities,
11-18    and equipment, and may employ or contract with a fire department to
11-19    employ all necessary personnel including supervisory personnel to
11-20    operate the fire department.
11-21          (c)  Bonds [issued] for financing a plan approved in
11-22    accordance with this section [establishment of the fire department]
11-23    shall be authorized and may be issued, and a district shall be
11-24    authorized to levy a tax to pay the principal of and interest on
11-25    such bonds, as provided by law for authorization and issuance of
11-26    other bonds of the district.
 12-1          (g)  A district or districts proposing to act jointly shall
 12-2    develop a detailed plan for the establishment, operation, and
 12-3    maintenance of the proposed department, including a detailed
 12-4    presentation of all financial requirements.  If a district is
 12-5    entering into a contract under Subsection (e), the district shall
 12-6    develop a plan that describes [in detail] the contract and
 12-7    [facilities and equipment to be devoted to service to the district
 12-8    and all proposals for providing the service and that] includes a
 12-9    presentation of the financial requirements under the contract.  A
12-10    plan required by this subsection may be included in a plan or
12-11    report otherwise required by this title for the creation of a
12-12    district or may be submitted to the commission for approval any
12-13    time after the creation of the district.  [Before adoption of a
12-14    plan and any contract by the district, the board shall hold a
12-15    hearing at which any person residing in the district may present
12-16    testimony for and against the proposed plan and any proposed
12-17    contract.  Notice of the hearing and the place at which the plan
12-18    and any contract may be examined shall be posted in two public
12-19    places within the district at least 10 days before the date of the
12-20    hearing.]
12-21          (h)  If no plan was approved by the commission at the time of
12-22    the district's creation, after [After] adoption of the plan and any
12-23    contract by the board, the plan and financial presentation,
12-24    together with any contract and a written report in a form
12-25    prescribed by the executive director describing existing fire
12-26    departments and fire-fighting services available within 25 miles of
 13-1    the boundaries of the district, shall be submitted to the executive
 13-2    director for consideration by the commission under rules adopted by
 13-3    the commission.  [Before approval or disapproval, the commission
 13-4    shall hold a hearing.  Notice of the hearing before the commission
 13-5    shall be posted by the board in at least two public places in the
 13-6    district at least five days before the hearing.]  Before the
 13-7    commission approves the application, it must find that it is
 13-8    economically feasible for the district to implement the plan and
 13-9    meet the provisions of any contract and shall take into
13-10    consideration in giving its approval the general financial
13-11    condition of the district and the economic feasibility of the
13-12    district carrying out the plan or meeting the obligations of the
13-13    contract.  A plan approved by the commission as part of the
13-14    creation of a district does not require further commission approval
13-15    unless the district materially alters the plan.
13-16          (i)  After approval of a plan by the commission, the district
13-17    shall submit to the electors of the district at the election to
13-18    approve bonds or to impose a mandatory fee for financing the plan,
13-19    or if no bonds or fees are to be approved, at an election called
13-20    for approval of the plan, which may be held in conjunction with an
13-21    election required by Section 49.102, the proposition of whether or
13-22    not the plan should be implemented or entered into by the district.
13-23    The ballots at the election shall be printed, as applicable, to
13-24    provide for voting for or against the proposition:  "The
13-25    implementation of the plan for (operation/joint operation) of a
13-26    fire department"; or "The plan and contract to provide
 14-1    fire-fighting services for the district."
 14-2          (j)  [No funds of the district may be used to establish a
 14-3    fire department, to enter into joint operation of a fire
 14-4    department, or to contract for fire-fighting services without the
 14-5    approval of a plan by the electors as provided in this section.
 14-6    However, the district may use available funds for preparation of a
 14-7    plan and any contract.]  The operation of a fire department or
 14-8    provision of fire-fighting services is an essential public
 14-9    necessity, and a district may discontinue any and all services,
14-10    including water and sewer service, to any person who fails to
14-11    timely pay fire department service fees or any other assessment
14-12    adopted by the district to support the fire department or the
14-13    provision of fire-fighting services.
14-14          SECTION 15.  Section 49.452, Water Code, is amended to read
14-15    as follows:
14-16          Sec. 49.452.  NOTICE TO PURCHASERS.  (a)(1)  Any person who
14-17    proposes to sell or convey real property located in a district
14-18    created under this title or by a special Act of the legislature
14-19    that is providing or proposing to provide, as the district's
14-20    principal function, water, sanitary sewer, drainage, and flood
14-21    control or protection facilities or services, or any of these
14-22    facilities or services that have been financed or are proposed to
14-23    be financed with bonds of the district payable in whole or part
14-24    from taxes of the district, or by imposition of a standby fee, if
14-25    any, to household or commercial users, other than agricultural,
14-26    irrigation, or industrial users, and which district includes less
 15-1    than all the territory in at least one county and which, if located
 15-2    within the corporate area of a city, includes less than 75 percent
 15-3    of the incorporated area of the city or which is located outside
 15-4    the corporate area of a city in whole or in substantial part, must
 15-5    first give to the purchaser the written notice provided in this
 15-6    section.
 15-7                (2)  The provisions of this section shall not be
 15-8    applicable to:
 15-9                      (A)  transfers of title under any type of lien
15-10    foreclosure;
15-11                      (B)  transfers of title by deed in cancellation
15-12    of indebtedness secured by a lien upon the property conveyed; [or]
15-13                      (C)  transfers of title by reason of a will or
15-14    probate proceedings; or
15-15                      (D)  transfers of title to a governmental entity.
15-16          (b)  The prescribed notice for [all] districts located in
15-17    whole or in part in the extraterritorial jurisdiction of one or
15-18    more home-rule municipalities, but not within the corporate limits
15-19    of a municipality, shall be executed by the seller and shall read
15-20    as follows:
15-21          "The real property, described below, that you are about to
15-22    purchase is located in the ___________________ District.  The
15-23    district has taxing authority separate from any other taxing
15-24    authority and may, subject to voter approval, issue an unlimited
15-25    amount of bonds and levy an unlimited rate of tax in payment of
15-26    such bonds.  As of this date, the rate of taxes levied by the
 16-1    district on real property located in the district is $__________ on
 16-2    each $100 of assessed valuation.  If the district has not yet
 16-3    levied taxes, the most recent projected rate of [debt service] tax,
 16-4    as of this date, is $__________ on each $100 of assessed valuation.
 16-5    The total amount of bonds approved by the voters and which have
 16-6    been or may, at this date, be issued (excluding refunding bonds and
 16-7    any bonds or portion of bonds issued payable solely from revenues
 16-8    received or expected to be received under a contract with a
 16-9    governmental entity) is $__________, and the aggregate initial
16-10    principal amounts of all bonds issued for one or more of the
16-11    specified facilities of the district and payable in whole or in
16-12    part from property taxes (excluding refunding bonds and any bonds
16-13    or portion of bonds issued payable solely from revenues received or
16-14    expected to be received under a contract with a governmental
16-15    entity) is $__________.
16-16          "The district has the authority to adopt and impose a standby
16-17    fee on property in the district that has water, sanitary sewer, or
16-18    drainage facilities and services available but not connected and
16-19    which does not have a house, building, or other improvement located
16-20    thereon and does not substantially utilize the utility capacity
16-21    available to the property.  The district may exercise the authority
16-22    without holding an election on the matter.  As of this date, the
16-23    most recent amount of the standby fee is $__________.  An unpaid
16-24    standby fee is a personal obligation of the person that owned the
16-25    property at the time of imposition and is secured by a lien on the
16-26    property.  Any person may request a certificate from the district
 17-1    stating the amount, if any, of unpaid standby fees on a tract of
 17-2    property in the district.
 17-3          "The district is located in whole or in part in the
 17-4    extraterritorial jurisdiction ('ETJ') of the City(s) of __________.
 17-5    Generally, a district located entirely within the ETJ of one or
 17-6    more cities may be annexed by the city or cities without the
 17-7    consent of the district or the voters of the district and the
 17-8    district may be dissolved after annexation occurs, subject to
 17-9    applicable law.
17-10          "The purpose of this district is to provide water, sewer,
17-11    drainage, or flood control facilities and services within the
17-12    district through the issuance of bonds payable in whole or in part
17-13    from property taxes.  The cost of these utility facilities is not
17-14    included in the purchase price of your property, and these utility
17-15    facilities are owned or to be owned by the district.  The legal
17-16    description of the property you are acquiring is as follows:
17-17    ___________________________________________________________________
17-18                                            ____________________ (Date)
17-19                                            ___________________________
17-20                                                Signature of Seller    
17-21          PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
17-22    IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.  THE DISTRICT
17-23    ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
17-24    THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
17-25    TAX RATES ARE APPROVED BY THE DISTRICT.  PURCHASER IS ADVISED TO
17-26    CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
 18-1    PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
 18-2          "The undersigned purchaser hereby acknowledges receipt of the
 18-3    foregoing notice at or prior to execution of a binding contract for
 18-4    the purchase of the real property described in such notice or at
 18-5    closing of purchase of the real property.
 18-6    ___________________________________________________________________
 18-7                                          ______________________ (Date)
 18-8                                          _____________________________
 18-9                                              Signature of Purchaser   
18-10          "(Note:  Correct district name, tax rate, bond amounts, and
18-11    legal description are to be placed in the appropriate space.)
18-12    Except for notices included as an addendum or paragraph of a
18-13    purchase contract, the notice shall be executed by the seller and
18-14    purchaser, as indicated.  If the district does not propose to
18-15    provide one or more of the specified facilities and services, the
18-16    appropriate purpose may be eliminated.  If the district has not yet
18-17    levied taxes, a statement of the district's most recent projected
18-18    rate of [debt service] tax is to be placed in the appropriate
18-19    space.  If the district does not have approval from the commission
18-20    to adopt and impose a standby fee, the second paragraph of the
18-21    notice may be deleted.  For the purposes of the notice form
18-22    required to be given to the prospective purchaser prior to
18-23    execution of a binding contract of sale and purchase, a seller and
18-24    any agent, representative, or person acting on the seller's behalf
18-25    may modify the notice by substitution of the words 'January 1,
18-26    ______' for the words 'this date' and place the correct calendar
 19-1    year in the appropriate space."
 19-2          (c)  The prescribed notice for districts located in whole or
 19-3    in part within the corporate limits of a municipality shall be
 19-4    executed by the seller and shall read as follows:
 19-5          "The real property, described below, that you are about to
 19-6    purchase is located in the _____ District.  The district has taxing
 19-7    authority separate from any other taxing authority and may, subject
 19-8    to voter approval, issue an unlimited amount of bonds and levy an
 19-9    unlimited rate of tax in payment of such bonds.  As of this date,
19-10    the rate of taxes levied by the district on real property located
19-11    in the district is $_______ on each $100 of assessed valuation.  If
19-12    the district has not yet levied taxes, the most recent projected
19-13    rate of tax, as of this date, is $_______ on each $100 of assessed
19-14    valuation.  The total amount of bonds approved by the voters and
19-15    which have been or may, at this date, be issued (excluding
19-16    refunding bonds and any bonds or portion of bonds issued payable
19-17    solely from revenues received or expected to be received under a
19-18    contract with a governmental entity) is $_________, and the
19-19    aggregate initial principal amounts of all bonds issued for one or
19-20    more of the specified facilities of the district and payable in
19-21    whole or in part from property taxes (excluding refunding bonds and
19-22    any bonds or portion of bonds issued payable solely from revenues
19-23    received or expected to be received under a contract with a
19-24    governmental entity) is $________.
19-25          "The district has the authority to adopt and impose a standby
19-26    fee on property in the district that has water, sanitary sewer, or
 20-1    drainage facilities and services available but not connected and
 20-2    which does not have a house, building, or other improvement located
 20-3    thereon and does not substantially utilize the utility capacity
 20-4    available to the property.  The district may exercise the authority
 20-5    without holding an election on the matter.  As of this date, the
 20-6    most recent amount of the standby fee is $________.  An unpaid
 20-7    standby fee is a personal obligation of the person that owned the
 20-8    property at the time of imposition and is secured by a lien on the
 20-9    property.  Any person may request a certificate from the district
20-10    stating the amount, if any, of unpaid standby fees on a tract of
20-11    property in the district.
20-12          "The district is located in whole or in part within the
20-13    City(s) of _______________.  District taxpayers are subject to the
20-14    taxes of the city(s) in addition to any district taxes during the
20-15    life of the district.  Generally, an in-city district can be
20-16    dissolved by city ordinance without the consent of the district or
20-17    the voters of the district, subject to applicable laws.
20-18          "The purpose of this district is to provide water, sewer,
20-19    drainage, or flood control facilities and services within the
20-20    district through the issuance of bonds payable in whole or in part
20-21    from property taxes.  The cost of these utility facilities is not
20-22    included in the purchase price of your property, and these utility
20-23    facilities are owned or to be owned by the district.  The legal
20-24    description of the property you are acquiring is as follows:
20-25    ___________________________________________________________________
20-26                                          _______________________(Date)
 21-1                                          _____________________________
 21-2                                                    Signature of Seller
 21-3          PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
 21-4    IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.  THE DISTRICT
 21-5    ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
 21-6    THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
 21-7    TAX RATES ARE APPROVED BY THE DISTRICT.  PURCHASER IS ADVISED TO
 21-8    CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
 21-9    PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
21-10          "The undersigned purchaser hereby acknowledges receipt of the
21-11    foregoing notice at or prior to execution of a binding contract for
21-12    the purchase of the real property described in such notice or at
21-13    closing of purchase of the real property.
21-14    ___________________________________________________________________
21-15                                          _______________________(Date)
21-16                                          _____________________________
21-17                                                 Signature of Purchaser
21-18          "(Note:  Correct district name, tax rate, bond amounts, and
21-19    legal description are to be placed in the appropriate space.)
21-20    Except for notices included as an addendum or paragraph of a
21-21    purchase contract, the notice shall be executed by the seller and
21-22    purchaser, as indicated.  If the district does not propose to
21-23    provide one or more of the specified facilities and services, the
21-24    appropriate purpose may be eliminated.  If the district has not yet
21-25    levied taxes, a statement of the district's most recent projected
21-26    rate of tax is to be placed in the appropriate space.  If the
 22-1    district does not have approval from the commission to adopt and
 22-2    impose a standby fee, the second paragraph of the notice may be
 22-3    deleted.  For the purposes of the notice form required to be given
 22-4    to the prospective purchaser before execution of a binding contract
 22-5    of sale and purchase, a seller and any agent, representative, or
 22-6    person acting on the seller's behalf may modify the notice by
 22-7    substitution of the words 'January 1, _____' for the words 'this
 22-8    date' and place the correct calendar year in the appropriate
 22-9    space."
22-10          (d)  The prescribed notice for districts not located in whole
22-11    or in part within the corporate limits of a municipality, or in
22-12    whole or in part in the extraterritorial jurisdiction of one or
22-13    more home-rule municipalities, shall be executed by the seller and
22-14    shall read as follows:
22-15          "The real property, described below, that you are about to
22-16    purchase is located in the _____ District.  The district has taxing
22-17    authority separate from any other taxing authority and may, subject
22-18    to voter approval, issue an unlimited amount of bonds and levy an
22-19    unlimited rate of tax in payment of such bonds.  As of this date,
22-20    the rate of taxes levied by the district on real property located
22-21    in the district is $_______ on each $100 of assessed valuation.  If
22-22    the district has not yet levied taxes, the most recent projected
22-23    rate of tax, as of this date, is $_______ on each $100 of assessed
22-24    valuation.  The total amount of bonds approved by the voters and
22-25    which have been or may, at this date, be issued (excluding
22-26    refunding bonds and any bonds or portion of bonds issued payable
 23-1    solely from revenues received or expected to be received under a
 23-2    contract with a governmental entity) is $_________, and the
 23-3    aggregate initial principal amounts of all bonds issued for one or
 23-4    more of the specified facilities of the district and payable in
 23-5    whole or in part from property taxes (excluding refunding bonds and
 23-6    any bonds or portion of bonds issued payable solely from revenues
 23-7    received or expected to be received under a contract with a
 23-8    governmental entity) is $________.
 23-9          "The district has the authority to adopt and impose a standby
23-10    fee on property in the district that has water, sanitary sewer, or
23-11    drainage facilities and services available but not connected and
23-12    which does not have a house, building, or other improvement located
23-13    thereon and does not substantially utilize the utility capacity
23-14    available to the property.  The district may exercise the authority
23-15    without holding an election on the matter.  As of this date, the
23-16    most recent amount of the standby fee is $________.  An unpaid
23-17    standby fee is a personal obligation of the person that owned the
23-18    property at the time of imposition and is secured by a lien on the
23-19    property.  Any person may request a certificate from the district
23-20    stating the amount, if any, of unpaid standby fees on a tract of
23-21    property in the district.
23-22          "The purpose of this district is to provide water, sewer,
23-23    drainage, or flood control facilities and services within the
23-24    district through the issuance of bonds payable in whole or in part
23-25    from property taxes.  The cost of these utility facilities is not
23-26    included in the purchase price of your property, and these utility
 24-1    facilities are owned or to be owned by the district.  The legal
 24-2    description of the property you are acquiring is as follows:
 24-3    ___________________________________________________________________
 24-4                                          _______________________(Date)
 24-5                                          _____________________________
 24-6                                                    Signature of Seller
 24-7          PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
 24-8    IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.  THE DISTRICT
 24-9    ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
24-10    THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
24-11    TAX RATES ARE APPROVED BY THE DISTRICT.  PURCHASER IS ADVISED TO
24-12    CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
24-13    PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
24-14          "The undersigned purchaser hereby acknowledges receipt of the
24-15    foregoing notice at or prior to execution of a binding contract for
24-16    the purchase of the real property described in such notice or at
24-17    closing of purchase of the real property.
24-18    ___________________________________________________________________
24-19                                          _______________________(Date)
24-20                                          _____________________________
24-21                                                 Signature of Purchaser
24-22          "(Note:  Correct district name, tax rate, bond amounts, and
24-23    legal description are to be placed in the appropriate space.)
24-24    Except for notices included as an addendum or paragraph of a
24-25    purchase contract, the notice shall be executed by the seller and
24-26    purchaser, as indicated.  If the district does not propose to
 25-1    provide one or more of the specified facilities and services, the
 25-2    appropriate purpose may be eliminated.  If the district has not yet
 25-3    levied taxes, a statement of the district's most recent projected
 25-4    rate of tax is to be placed in the appropriate space.  If the
 25-5    district does not have approval from the commission to adopt and
 25-6    impose a standby fee, the second paragraph of the notice may be
 25-7    deleted.  For the purposes of the notice form required to be given
 25-8    to the prospective purchaser prior to execution of a binding
 25-9    contract of sale and purchase, a seller and any agent,
25-10    representative, or person acting on the seller's behalf may modify
25-11    the notice by substitution of the words 'January 1, _____' for the
25-12    words 'this date' and place the correct calendar year in the
25-13    appropriate space."
25-14          (e)  If the law regarding annexation or district dissolution
25-15    is changed, causing inaccuracies in the content of the notices as
25-16    provided by this section, the district shall revise the content of
25-17    the notice to accurately reflect the current law.
25-18          (f)  The notice required by this section shall be given to
25-19    the prospective purchaser prior to execution of a binding contract
25-20    of sale and purchase either separately or as an addendum or
25-21    paragraph of a purchase contract.  In the event a contract of
25-22    purchase and sale is entered into without the seller providing the
25-23    notice required by this subsection, the purchaser shall be entitled
25-24    to terminate the contract.  If, however, the seller furnishes the
25-25    required notice at or prior to closing the purchase and sale
25-26    contract and the purchaser elects to close even though such notice
 26-1    was not timely furnished prior to execution of the contract, it
 26-2    shall be conclusively presumed that the purchaser has waived all
 26-3    rights to terminate the contract and recover damages or other
 26-4    remedies or rights under the provisions of this section.
 26-5    Notwithstanding any provision of this subchapter to the contrary,
 26-6    all sellers, title companies, and examining attorneys, and any
 26-7    agent, representative, or person acting on their behalf, shall not
 26-8    be liable for damages under the provisions of either Subsection (o)
 26-9    [(l)] or (p) [(m)] or liable for any other damages to any person
26-10    for failure to provide the notice required by this section to a
26-11    purchaser prior to execution of a binding contract of a purchase
26-12    and sale when the district has not filed the information form and
26-13    map or plat as required under Section 49.455.
26-14          (g) [(d)]  The purchaser shall sign the notice or purchase
26-15    contract including such notice to evidence the receipt of notice.
26-16          (h) [(e)]  At the closing of purchase and sale, a separate
26-17    copy of such notice with current information shall be executed by
26-18    the seller and purchaser, acknowledged, and thereafter recorded in
26-19    the deed records of the county in which the property is located.
26-20    For the purposes of this section, all sellers, title companies, and
26-21    examining attorneys, and any agent, representative, or person
26-22    acting on their behalf, shall be entitled to rely on the accuracy
26-23    of the information form and map or plat as last filed by each
26-24    district under Section 49.455 or the information contained in or
26-25    shown on the notice form issued by the district under Section
26-26    49.453 in completing the notice form to be executed by the seller
 27-1    and purchaser at the closing of purchase and sale.  Any information
 27-2    taken from the information form or map or plat as last filed by
 27-3    each district and the information contained in or shown on the
 27-4    notice form issued by the district under Section 49.453 shall be,
 27-5    for purposes of this section, conclusively presumed as a matter of
 27-6    law to be correct.  All subsequent sellers, purchasers, title
 27-7    insurance companies, examining attorneys, and lienholders shall be
 27-8    entitled to rely upon the information form and map or plat filed by
 27-9    the district or the notice form issued by the district under
27-10    Section 49.453.
27-11          (i) [(f)]  For the purposes of this section, an executory
27-12    contract of purchase and sale having a performance period of more
27-13    than six months shall be considered a sale under Subsection (a).
27-14          (j) [(g)]  For the purposes of the notice form to be given to
27-15    the  prospective purchaser prior to execution of a binding contract
27-16    of sale and purchase, a seller and any agent, representative, or
27-17    person acting in the seller's behalf may modify the notice by
27-18    substitution of the words "January 1, ____" for the words "this
27-19    date" and place the correct calendar year in the appropriate space.
27-20    All sellers, and all persons completing the prescribed notice in
27-21    the sellers' behalf, shall be entitled to rely on the information
27-22    contained in or shown on the information form and map or plat filed
27-23    of record by the district under Section 49.455 in completing the
27-24    prescribed form to be given to the prospective purchaser prior to
27-25    execution of a binding contract of sale and purchase.  Except as
27-26    otherwise provided in Subsection (h) [(e)], any information taken
 28-1    from the information form or map or plat filed of record by the
 28-2    district in effect as of January 1 of each year shall be, for
 28-3    purposes of the notice to be given to the prospective purchaser
 28-4    prior to execution of a binding contract of sale and purchase,
 28-5    conclusively presumed as a matter of law to be correct for the
 28-6    period January 1 through December 31 of such calendar year.  A
 28-7    seller and any persons completing the prescribed notice in the
 28-8    seller's behalf may provide more recent information, if available,
 28-9    than the information contained in or shown on the information form
28-10    and map or plat filed of record by the district under Section
28-11    49.455 in effect as of January 1 of each year in completing the
28-12    prescribed form to be given to the purchaser prior to execution of
28-13    a binding contract of sale and purchase.  Nothing contained in the
28-14    preceding sentence shall be construed to create an affirmative duty
28-15    on the part of a seller or any persons completing the prescribed
28-16    notice in the seller's behalf to provide more recent information
28-17    than the information taken from the information form and map or
28-18    plat filed of record by the district as of January 1 of each year
28-19    in completing the prescribed notice to be given to the purchaser
28-20    prior to execution of a binding contract of sale and purchase.  All
28-21    subsequent sellers, purchasers, title insurance companies,
28-22    examining attorneys, and lienholders shall be entitled to rely upon
28-23    the information form and map or plat filed by the district.
28-24          (k) [(h)]  If such notice is given at closing as provided in
28-25    Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
28-26    successors, or assigns, shall not be entitled to maintain any
 29-1    action for damages or maintain any action against a seller, title
 29-2    insurance company, or lienholder, or any agent, representative, or
 29-3    person acting in their behalf, by reason of use by the seller of
 29-4    the information filed for record by the district or reliance by the
 29-5    seller on the filed plat and filed legal description of the
 29-6    district in determining whether the property to be sold and
 29-7    purchased is within the district.  No action may be maintained
 29-8    against any title company for failure to disclose the inclusion of
 29-9    the described real property within a district when the district has
29-10    not filed for record the information form, map, or plat with the
29-11    clerk of the county or counties in which the district is located.
29-12          (l) [(i)]  Any purchaser who purchases any real property in a
29-13    district and who thereafter sells or conveys the same shall on
29-14    closing of such subsequent sale be conclusively considered as
29-15    having waived any prior right to damages under this section.
29-16          (m) [(j)]  It is the express intent of this section that all
29-17    sellers, title insurance companies, examining attorneys, vendors of
29-18    property and tax information, real estate brokers, and lienholders,
29-19    and any agent, representative, or person acting on their behalf,
29-20    shall be entitled to rely on the accuracy of the information form
29-21    and map or plat as last filed by each district or the information
29-22    contained in or shown on the notice form issued by the district
29-23    under Section 49.453, or for the purposes of the notice to be given
29-24    the purchaser prior to execution of a binding contract of sale and
29-25    purchase the information contained in or shown on the information
29-26    form and map or plat filed of record by the district in effect as
 30-1    of January 1 of each year for the period January 1 through December
 30-2    31 of such calendar year.
 30-3          (n) [(k)]  Except as otherwise provided in Subsection (f)
 30-4    [(c)], if any sale or conveyance of real property within a district
 30-5    is not made in compliance with the provisions of this section, the
 30-6    purchaser may institute a suit for damages under the provisions of
 30-7    either Subsection (o) [(l)] or (p) [(m)].
 30-8          (o) [(l)]  A purchaser of real property covered by the
 30-9    provisions of this section, if the sale or conveyance of the
30-10    property is not made in compliance with this section, may institute
30-11    a suit for damages in the amount of all costs relative to the
30-12    purchase of the property plus interest and reasonable attorney's
30-13    fees.  The suit for damages may be instituted jointly or severally
30-14    against the person, firm, corporation, partnership, organization,
30-15    business trust, estate, trust, association, or other legal entity
30-16    that sold or conveyed the property to the purchaser.  Following the
30-17    recovery of damages under this subsection, the amount of the
30-18    damages shall first be paid to satisfy all unpaid obligations on
30-19    each outstanding lien or liens on the property and the remainder of
30-20    the damage amount shall be paid to the purchaser.  On payment of
30-21    all damages respectively to the lienholders and purchaser, the
30-22    purchaser shall reconvey the property to the seller.
30-23          (p) [(m)]  A purchaser of real property covered by the
30-24    provisions of this section, if the sale or conveyance of the
30-25    property is not made in compliance with this section, may institute
30-26    a suit for damages in an amount not to exceed $5,000, plus
 31-1    reasonable attorney's fees.
 31-2          (q) [(n)]  A purchaser is not entitled to recover damages
 31-3    under both Subsections (o) [(l)] and (p) [(m)], and entry of a
 31-4    final decision awarding damages to the purchaser under either
 31-5    Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
 31-6    recovering damages under the other subsection.  Notwithstanding any
 31-7    part or provision of the general or special laws or the common law
 31-8    of the state to the contrary, the relief provided under Subsections
 31-9    (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
31-10    purchaser aggrieved by the seller's failure to comply with the
31-11    provisions of this section.  Any action for damages shall not,
31-12    however, apply to, affect, alter, or impair the validity of any
31-13    existing vendor's lien, mechanic's lien, or deed of trust lien on
31-14    the property.
31-15          (r) [(o)]  A suit for damages under the provisions of this
31-16    section must be brought within 90 days after the purchaser receives
31-17    the first district tax notice or within four years after the
31-18    property is sold or conveyed to the purchaser, whichever time
31-19    occurs first, or the purchaser loses the right to seek damages
31-20    under this section.
31-21          (s) [(p)]  Notwithstanding any provisions of this subchapter
31-22    to the contrary, a purchaser may not recover damages of any kind
31-23    under this section if that person:
31-24                (1)  purchases an equity in real property and in
31-25    conjunction with the purchase assumes any liens, whether purchase
31-26    money or otherwise; and
 32-1                (2)  does not require proof of title by abstract, title
 32-2    policy, or any other proof of title.
 32-3          SECTION 16.  Section 54.236, Water Code, is amended to read
 32-4    as follows:
 32-5          Sec. 54.236.  STREET OR SECURITY LIGHTING.  Subject to the
 32-6    provisions of this section, a district may purchase, install
 32-7    [accept], operate, and maintain street lighting or security
 32-8    lighting within public utility easements or public rights-of-way
 32-9    within the boundaries of the district.  [Such street or security
32-10    lighting facilities must have been constructed by an owner or
32-11    developer of property within the district and must have been
32-12    required by a city as a condition to the city granting its consent
32-13    to the creation of the district pursuant to Section 54.016 of this
32-14    code.]  A district may not issue bonds supported by ad valorem
32-15    taxes to pay for the purchase, installation, [development] and
32-16    maintenance of street or security lighting.
32-17          SECTION 17.  Subdivision (1), Section 54.772, Water Code, is
32-18    amended to read as follows:
32-19                (1)  "Recreational facilities" means parks,
32-20    landscaping, parkways, greenbelts, sidewalks, trails, public
32-21    right-of-way beautification projects, and recreational equipment
32-22    and facilities.  The term includes associated street and security
32-23    lighting.
32-24          SECTION 18.  Subsection (a), Section 54.774, Water Code, is
32-25    amended to read as follows:
32-26          (a)  A district may not issue bonds supported by ad valorem
 33-1    taxes to pay for the development and maintenance of recreational
 33-2    facilities or street lighting.
 33-3          SECTION 19.  Subsection (a), Section 57.092, Water Code, is
 33-4    amended to read as follows:
 33-5          (a)  The district may enter into all necessary and proper
 33-6    contracts and employ all persons and means necessary to purchase,
 33-7    acquire, build, construct, complete, carry out, maintain, protect,
 33-8    and in case of necessity, add to and rebuild, all works and
 33-9    improvements [within the district] necessary or proper to fully
33-10    accomplish a reclamation plan lawfully adopted for the district.
33-11          SECTION 20.  Subchapter D, Chapter 51, Water Code, is amended
33-12    by adding Section 51.131 to read as follows:
33-13          Sec. 51.131.  PENALTY FOR VIOLATION OF REGULATION.  A person
33-14    who violates a regulation adopted by a district under this chapter
33-15    or other law commits an offense.  An offense under this section is
33-16    a Class C misdemeanor.
33-17          SECTION 21.  Section 60.350, Water Code, is repealed.
33-18          SECTION 22.  (a)  The repeal by this Act of Section 60.350,
33-19    Water Code, does not affect the applicability of Section 49.181,
33-20    Water Code, to bonds with regard to which an application and report
33-21    were submitted to the Texas Natural Resource Conservation
33-22    Commission under Subsection (b), Section 49.181, Water Code, before
33-23    the effective date of this Act.  Those bonds are governed by
33-24    Section 49.181, Water Code, and Section 60.350, Water Code,
33-25    continues in effect as to those bonds for that purpose.
33-26          (b)  The repeal by this Act of Section 60.350, Water Code,
 34-1    does not affect the applicability of Section 49.183, Water Code, to
 34-2    bonds issued before the effective date of this Act.  Those bonds
 34-3    are governed by Section 49.183, Water Code, and Section 60.350,
 34-4    Water Code, continues in effect as to those bonds for that purpose.
 34-5          SECTION 23.  This Act takes effect September 1, 1999.
 34-6          SECTION 24.  The importance of this legislation and the
 34-7    crowded condition of the calendars in both houses create an
 34-8    emergency and an imperative public necessity that the
 34-9    constitutional rule requiring bills to be read on three several
34-10    days in each house be suspended, and this rule is hereby suspended.