By Brown                                              S.B. No. 1733
         76R7119 MI-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the general powers and authority of water districts.
 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 or by the county commissioners
 2-7     court if the district was created by the county commissioners
 2-8     court, regardless of whether a petition has been presented to the
 2-9     board under Subsection (b).  An appointed director shall serve for
2-10     the unexpired term of the director he or she is replacing.
2-11           (d) [(c)]  In the event of a failure to elect one or more
2-12     members of the board of a district resulting from the absence of,
2-13     or failure to vote by, the qualified voters in the district, the
2-14     current members of the board holding the positions not filled at
2-15     such election shall be deemed to have been reelected and shall
2-16     serve an additional term of office.
2-17           SECTION 3.  Section 49.155, Water Code, is amended to read as
2-18     follows:
2-19           Sec. 49.155.  PAYMENT [REPAYMENT] OF EXPENSES.  (a)  The
2-20     district may pay out of bond proceeds or other available funds of
2-21     the district all [costs and] expenses reasonable and necessary to
2-22     effect the issuance, sale, and delivery of bonds as determined by
2-23     the board, [necessarily incurred in the organization and operation
2-24     of a district during creation and construction periods] including,
2-25     but not limited to, the following:
2-26                 (1)  interest during construction [organizational,
2-27     administrative, and operating expenses];
 3-1                 (2)  capitalized interest not to exceed three years'
 3-2     interest or reasonable and necessary reserve funds not to exceed
 3-3     two years' interest;
 3-4                 (3)  interest on funds advanced to the district;
 3-5                 (4)  financial advisor, bond counsel, attorney, and
 3-6     other consultant fees;
 3-7                 (5)  paying agent, registrar, and escrow agent fees;
 3-8                 (6)  insurance premiums, rating letter fees, market
 3-9     study costs, and credit enhancement costs;
3-10                 (7)  right-of-way acquisition;
3-11                 (8)  underwriter's discounts or premiums;
3-12                 (9)  engineering fees;
3-13                 (10)  commission and attorney general fees;
3-14                 (11)  printing costs;
3-15                 (12)  all organizational, administrative, and operating
3-16     costs during creation and construction periods; and
3-17                 (13)  the cost of investigation and making plans[;]
3-18                 [(3)  the cost of the engineer's report;]
3-19                 [(4)  legal fees; and]
3-20                 [(5)  any other incidental expenses].
3-21           (b)  For purposes of this section, construction periods shall
3-22     mean any periods during which the district is constructing its
3-23     facilities or there is construction by third parties of above
3-24     ground improvements within the district, but in no event longer
3-25     than five years.
3-26           (c)  The district may reimburse any person for money advanced
3-27     for the purposes in Subsection (a) and may be charged interest on
 4-1     such funds.
 4-2           (d)  These payments may be made from money obtained from the
 4-3     issuance of notes or the sale of bonds issued by the district or
 4-4     out of maintenance taxes or other revenues of the district.
 4-5           SECTION 4.  Section 49.211, Water Code, is amended by adding
 4-6     Subsection (e) to read as follows:
 4-7           (e)  A district that is authorized by law to engage in
 4-8     drainage or flood control activities may include among the
 4-9     district's land, works, improvements, facilities, plants,
4-10     equipment, and appliances the following areas and projects
4-11     associated with drainage or flood control projects of the district:
4-12                 (1)  stormwater retention or detention lands and
4-13     projects;
4-14                 (2)  sedimentation basins;
4-15                 (3)  wetlands mitigation lands and projects;
4-16                 (4)  habitat reconstruction or restoration lands and
4-17     projects; and
4-18                 (5)  any temporary, permanent, constant, or variable
4-19     levee improvements of water related to projects described by
4-20     Subdivision (4).
4-21           SECTION 5.  Section 49.212, Water Code, is amended by
4-22     amending Subsection (a) and adding Subsection (e) to read as
4-23     follows:
4-24           (a)  A district may adopt and enforce all necessary charges,
4-25     fees, or rentals, in addition to taxes, for providing or making
4-26     available any district facility or service, including fire-fighting
4-27     activities provided under Section 49.351.
 5-1           (e)  Chapter 2007, Government Code, does not apply to a tax
 5-2     levied, a standby fee imposed, or a charge, fee, or rental adopted
 5-3     or enforced under this chapter or any chapter of this code.
 5-4           SECTION 6.  Section 49.226(b), Water Code, is amended to read
 5-5     as follows:
 5-6           (b)  Any property dedicated to or acquired by the district
 5-7     without expending district funds may be abandoned or released to
 5-8     the original grantor, the grantor's heirs, assigns, executors, or
 5-9     successors upon terms and conditions deemed necessary or
5-10     advantageous to the district and without receiving compensation for
5-11     such abandonment or release.  District property may also be
5-12     abandoned, released, exchanged, or transferred to another district,
5-13     municipality, county, countywide agency, or authority upon terms
5-14     and conditions deemed necessary or advantageous to the district.
5-15     Narrow strips of property resulting from boundary or surveying
5-16     conflicts or similar causes, or from insubstantial encroachments by
5-17     abutting property owners, or property of larger configuration that
5-18     has been subject to encroachments by abutting property owners for
5-19     more than 25 years may be abandoned, released, exchanged, or
5-20     transferred to such abutting owners upon terms and conditions
5-21     deemed necessary or advantageous to the district.  Chapter 272,
5-22     Local Government Code, shall not apply to this section
5-23     [subsection].
5-24           SECTION 7.  Subchapter H, Chapter 49, Water Code, is amended
5-25     by adding Section 49.233 to read as follows:
5-26           Sec. 49.233.  PROHIBITION OF CERTAIN PRIVATE ON-SITE
5-27     FACILITIES.  (a)  A district that operates a wastewater collection
 6-1     system to serve land within its boundaries by rule may prohibit the
 6-2     installation of private on-site wastewater holding or treatment
 6-3     facilities on land within the district.
 6-4           (b)  A district that prohibits installation as described by
 6-5     Subsection (a)  shall agree to reimburse a particular tract the
 6-6     costs of connecting the tract to the district's wastewater
 6-7     collection system if the distance along public rights-of-way or
 6-8     utility easements from the nearest  point of the district's
 6-9     wastewater collection system to the boundary line of the particular
6-10     tract requiring wastewater collection services is 1,000 feet or
6-11     more, subject to commission rules regarding reimbursement of those
6-12     costs.
6-13           SECTION 8.  Section 49.271(c), Water Code, is amended to read
6-14     as follows:
6-15           (c)  The district may adopt minimum criteria for the
6-16     qualifications of bidders on its construction contracts and for
6-17     sureties issuing payment and performance bonds.  For construction
6-18     contracts over $25,000, the district shall require a person who
6-19     bids to submit a certified or cashier's check on a responsible bank
6-20     in the state equal to at least two percent of the total amount of
6-21     the bid, or a bid bond of at least two percent of the total amount
6-22     of the bid issued by a surety legally authorized to do business in
6-23     this state, as a good faith deposit to ensure execution of the
6-24     contract.  If the successful bidder fails or refuses to enter into
6-25     a proper contract with the district, or fails or refuses to furnish
6-26     the payment and performance bonds [bond] required by law, the
6-27     bidder forfeits the deposit.  The payment, performance, and bid
 7-1     bonding requirements of this subsection do not apply to contracts
 7-2     for the purchase of equipment, materials, and machinery not
 7-3     otherwise incorporated into a construction project.
 7-4           SECTION 9.  Section 49.273(i), Water Code, is amended to read
 7-5     as follows:
 7-6           (i)  If changes in plans or specifications are necessary
 7-7     after the performance of the contract is begun or if it is
 7-8     necessary to  decrease or increase the quantity of the work to be
 7-9     performed or of the materials, equipment, or supplies to be
7-10     furnished, the board may approve change orders making the changes.
7-11     The original contract price may not be increased by more than 25
7-12     percent of the aggregate of all change orders, excluding change
7-13     orders required [Change orders to contracts may be issued only] as
7-14     a result of unanticipated conditions encountered during
7-15     construction, repair, or renovation or changes in regulatory
7-16     criteria or to facilitate project coordination with other political
7-17     entities.
7-18           SECTION 10.  Section 49.278, Water Code, is amended by adding
7-19     Subsection (c) to read as follows:
7-20           (c)  Article 9102, Revised Statutes, does not apply to a
7-21     district of less than 5,000 acres.
7-22           SECTION 11.  Subchapter I, Chapter 49, Water Code, is amended
7-23     by adding Section 49.279 to read as follows:
7-24           Sec. 49.279.   PREVAILING WAGE RATES.  In addition to the
7-25     alternative procedures provided by Section 2258.022,  Government
7-26     Code:
7-27                 (1)  a district located wholly or partially within one
 8-1     or more municipalities or within the extraterritorial jurisdiction
 8-2     of one or more municipalities may establish its prevailing wage
 8-3     rate for  public works by adopting the prevailing wage rate of:
 8-4                       (A)  one of the municipalities; or
 8-5                       (B)  the county in which the district is located;
 8-6     and
 8-7                 (2)  a district not located wholly or partially within
 8-8     the extraterritorial jurisdiction of any municipality may establish
 8-9     the district's prevailing wage rate by adopting the wage rate of
8-10     the county in which the district is located.
8-11           SECTION 12.  Section 49.304(a), Water Code, is amended to
8-12     read as follows:
8-13           (a)  If the board determines that an exclusion hearing should
8-14     be held as provided in Section 49.303(a) or (c), or if a written
8-15     petition requesting an exclusion hearing is filed with the
8-16     secretary of the board as provided in Section 49.303(b) [49.303],
8-17     the board shall give notice of the time and place of a hearing to
8-18     announce its own conclusions relating to land or other property to
8-19     be excluded and to receive petitions for exclusion of land or other
8-20     property.
8-21           SECTION 13.  Subchapter J, Chapter 49, Water Code, is amended
8-22     by adding Section 49.315 to read as follows:
8-23           Sec. 49.315.  ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
8-24     (a)  A district may add or exclude land in accordance with this
8-25     subchapter:
8-26                 (1)  after a district is created by order of the
8-27     commission or another governmental entity or by special Act of the
 9-1     legislature; and
 9-2                 (2)  before an election is held as required by Section
 9-3     49.102.
 9-4           (b)  If land is added or excluded as provided by this
 9-5     section, the election to confirm the district required by Section
 9-6     49.102 shall be to confirm the district as modified.
 9-7           SECTION 14.  Section 49.327, Water Code, is amended to read
 9-8     as follows:
 9-9           Sec. 49.327.  ASSETS ESCHEAT TO STATE.  (a) Upon the
9-10     dissolution of a district by the commission, all assets of the
9-11     district shall escheat to the State of Texas.  The assets shall be
9-12     administered by the comptroller and shall be disposed of in the
9-13     manner provided by Chapter 74, Property Code.
9-14           (b)  Title 6, Property Code, does not apply to any personal
9-15     property held by a district that has not been dissolved by order of
9-16     the commission.
9-17           SECTION 15.  Sections 49.351(a)-(c) and (g)-(j), Water Code,
9-18     are amended to read as follows:
9-19           (a)  A district providing potable water or sewer service to
9-20     household users may establish, operate, and maintain a fire
9-21     department to perform all fire-fighting activities within the
9-22     district as provided in this subchapter and may issue bonds or
9-23     impose a mandatory fee, with voter approval, [bonds] for financing
9-24     the establishment of the fire department or a contract entered into
9-25     under Subsection (d) or (e), including the construction and
9-26     purchase of necessary buildings, facilities, land, and equipment
9-27     and the provision of an adequate water supply.
 10-1          (b)  After approval of the district electors of a plan to
 10-2    operate, [or] jointly operate, or contribute to the operation of a
 10-3    fire department, the district or districts shall provide an
 10-4    adequate system and water supply for fire-fighting purposes, may
 10-5    construct and purchase necessary buildings, facilities, and
 10-6    equipment, and may employ or contract with a fire department to
 10-7    employ all necessary personnel including supervisory personnel to
 10-8    operate the  fire department.
 10-9          (c)  Bonds issued for establishment of the fire department or
10-10    financing a contract entered into under Subsection (d) or (e)
10-11    shall be  authorized and bonds may be issued, and a district shall
10-12    be authorized to levy a tax to pay the principal of and interest on
10-13    such bonds, as provided by law for authorization and issuance of
10-14    other bonds of the district.
10-15          (g)  A district or districts proposing to act jointly shall
10-16    develop a detailed plan for the establishment, operation, and
10-17    maintenance of the proposed department, including a detailed
10-18    presentation of all financial requirements.  If a district is
10-19    entering into a contract under Subsection (e), the district shall
10-20    develop a plan that describes [in detail] the contract and
10-21    [facilities and equipment to be devoted to service to the district
10-22    and all proposals for providing the service and that] includes a
10-23    presentation of the financial requirements under the contract.  A
10-24    plan required by this subsection may be included in a  plan or
10-25    report otherwise required by this title for the creation of a
10-26    district or may be submitted to the commission for approval any
10-27    time after the creation of the district.  [Before adoption of a
 11-1    plan and any contract by the district, the board shall hold a
 11-2    hearing at which any person residing in the district may present
 11-3    testimony for and against the proposed plan and any proposed
 11-4    contract.  Notice of the hearing and the place at which the plan
 11-5    and any contract may be examined shall be posted in two public
 11-6    places within the district at least 10 days before the date of the
 11-7    hearing.]
 11-8          (h)  If no plan was approved by the commission at the time of
 11-9    the district's creation, after [After] adoption of the plan and any
11-10    contract by the board, the plan and financial presentation,
11-11    together with any contract and a written report in a form
11-12    prescribed by the executive director describing existing fire
11-13    departments and fire-fighting services available within 25 miles of
11-14    the boundaries of the district, shall be submitted to the executive
11-15    director for consideration by the commission under rules adopted by
11-16    the commission.  [Before approval or disapproval, the commission
11-17    shall hold a hearing.  Notice of the hearing before the commission
11-18    shall be posted by the board in at least two public places in the
11-19    district at least five days before the hearing.]  Before the
11-20    commission approves the application, it must find that it is
11-21    economically feasible for the district to implement the plan and
11-22    meet the provisions of any contract and shall take into
11-23    consideration in giving its approval the general financial
11-24    condition of the district and the economic feasibility of the
11-25    district carrying out the plan or meeting the obligations of the
11-26    contract.  A plan approved by the commission as part of the
11-27    creation of a district does not require further commission approval
 12-1    unless the district materially alters the plan.
 12-2          (i)  After approval of a plan by the commission, the district
 12-3    shall submit to the electors of the district at the election to
 12-4    approve bonds or to impose a mandatory fee for financing the plan,
 12-5    or if no  bonds or fees are to be approved, at an election called
 12-6    for approval of the plan, which may be held in conjunction with an
 12-7    election required by Section 49.102, the proposition of whether or
 12-8    not the plan should be implemented or entered into by the district.
 12-9    The ballots at the election shall be printed, as applicable, to
12-10    provide for voting for or against the proposition:  "The
12-11    implementation of the plan for (operation/joint operation) of a
12-12    fire department"; or "The plan and contract to provide
12-13    fire-fighting services for the district."
12-14          (j)  [No funds of the district may be used to establish a
12-15    fire department, to enter into joint operation of a fire
12-16    department, or to contract for fire-fighting services without the
12-17    approval of a plan by the electors as provided in this section.
12-18    However, the district may use available funds for preparation of a
12-19    plan and any contract.]  The operation of a fire department or
12-20    provision of fire-fighting services is an essential public
12-21    necessity, and a district may discontinue any and all services,
12-22    including water and sewer service, to any person who fails to
12-23    timely pay fire department service fees or any other assessment
12-24    adopted by the district to support the fire department or the
12-25    provision of fire-fighting services.
12-26          SECTION 16.  Section 49.452, Water Code, is amended to read
12-27    as follows:
 13-1          Sec. 49.452.  NOTICE TO PURCHASERS.  (a)(1)  Any person who
 13-2    proposes to sell or convey real property located in a district
 13-3    created under this title or by a special Act of the legislature
 13-4    that is providing or proposing to provide, as the district's
 13-5    principal function, water, sanitary sewer, drainage, and flood
 13-6    control or protection facilities or services, or any of these
 13-7    facilities or services that have been financed or are proposed to
 13-8    be financed with bonds of the district payable in whole or part
 13-9    from taxes of the district, or by imposition of a standby fee, if
13-10    any, to household or commercial users, other than agricultural,
13-11    irrigation, or industrial users, and which district includes less
13-12    than all the territory in at least one county and which, if located
13-13    within the corporate area of a city, includes less than 75 percent
13-14    of the incorporated area of the city or which is located outside
13-15    the corporate area of a city in whole or in substantial part, must
13-16    first give to the purchaser the written notice provided in this
13-17    section.
13-18                (2)  The provisions of this section shall not be
13-19    applicable to:
13-20                      (A)  transfers of title under any type of lien
13-21    foreclosure;
13-22                      (B)  transfers of title by deed in cancellation
13-23    of indebtedness secured by a lien upon the property conveyed; [or]
13-24                      (C)  transfers of title by reason of a will or
13-25    probate proceedings; or
13-26                      (D)  transfers of title to a governmental entity.
13-27          (b)  The prescribed notice for [all] districts located in
 14-1    whole or in part in the extraterritorial jurisdiction of one or
 14-2    more home-rule municipalities, but not within the corporate limits
 14-3    of a municipality, shall be executed by the seller and shall read
 14-4    as follows:
 14-5          "The real property, described below, that you are about to
 14-6    purchase is located in the ___________________ District.  The
 14-7    district has taxing authority separate from any other taxing
 14-8    authority and may, subject to voter approval, issue an unlimited
 14-9    amount of bonds and levy an unlimited rate of tax in payment of
14-10    such bonds.  As of this date, the rate of taxes levied by the
14-11    district on real property located in the district is $__________ on
14-12    each $100 of assessed valuation.  If the district has not yet
14-13    levied taxes, the most recent projected rate of [debt service] tax,
14-14    as of this date, is $__________ on each $100 of assessed valuation.
14-15    The total amount of bonds approved by the voters and which have
14-16    been or may, at this date, be issued (excluding refunding bonds and
14-17    any bonds  or portion of bonds issued payable solely from revenues
14-18    received or expected to be received under a contract with a
14-19    governmental entity) is $__________, and the aggregate initial
14-20    principal amounts of all bonds issued for one or more of the
14-21    specified facilities of the district and payable in whole or in
14-22    part from property taxes (excluding refunding bonds and any bonds
14-23    or portion of bonds issued payable solely from revenues received or
14-24    expected to be received under a contract with a governmental
14-25    entity) is $__________.
14-26          "The district has the authority to adopt and impose a standby
14-27    fee on property in the district that has water, sanitary sewer, or
 15-1    drainage facilities and services available but not connected and
 15-2    which does not have a house, building, or other improvement located
 15-3    thereon and does not substantially utilize the utility capacity
 15-4    available to the property.  The district may exercise the authority
 15-5    without holding an election on the matter.  As of this date, the
 15-6    most recent amount of the standby fee is $__________.  An unpaid
 15-7    standby fee is a personal obligation of the person that owned the
 15-8    property at the time of imposition and is secured by a lien on the
 15-9    property.  Any person may request a certificate from the district
15-10    stating the amount, if any, of unpaid standby fees on a tract of
15-11    property in the district.
15-12          "The district is located in whole or in part in the
15-13    extraterritorial jurisdiction ('ETJ') of the City(s) of __________.
15-14    Generally, a district located entirely within the ETJ of one or
15-15    more cities may be annexed by the city or cities without the
15-16    consent of the district or the voters of the district and the
15-17    district may be dissolved after annexation occurs, subject to
15-18    applicable law.
15-19          "The purpose of this district is to provide water, sewer,
15-20    drainage, or flood control facilities and services within the
15-21    district through the issuance of bonds payable in whole or in part
15-22    from property taxes.  The cost of these utility facilities is not
15-23    included in the purchase price of your property, and these utility
15-24    facilities are owned or to be owned by the district.  The legal
15-25    description of the property you are acquiring is as follows:
15-26    ___________________________________________________________________
15-27                                            ____________________ (Date)
 16-1                                            ___________________________
 16-2                                                    Signature of Seller
 16-3          PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
 16-4    IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.  THE DISTRICT
 16-5    ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
 16-6    THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
 16-7    TAX RATES ARE APPROVED BY THE DISTRICT.  PURCHASER IS ADVISED TO
 16-8    CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
 16-9    PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
16-10          "The undersigned purchaser hereby acknowledges receipt of the
16-11    foregoing notice at or prior to execution of a binding contract for
16-12    the purchase of the real property described in such notice or at
16-13    closing of purchase of the real property.
16-14    ___________________________________________________________________
16-15                                          ______________________ (Date)
16-16                                          _____________________________
16-17                                                 Signature of Purchaser
16-18          "(Note:  Correct district name, tax rate, bond amounts, and
16-19    legal description are to be placed in the appropriate space.)
16-20    Except for notices included as an addendum or paragraph of a
16-21    purchase contract, the notice shall be executed by the seller and
16-22    purchaser, as indicated.  If the district does not propose to
16-23    provide one or more of the specified facilities and services, the
16-24    appropriate purpose may be eliminated.  If the district has not yet
16-25    levied taxes, a statement of the district's most recent projected
16-26    rate of [debt service] tax is to be placed in the appropriate
16-27    space.  If the district does not have approval from the commission
 17-1    to adopt and impose a standby fee, the second paragraph of the
 17-2    notice may be deleted.  For the purposes of the notice form
 17-3    required to be given to the prospective purchaser prior to
 17-4    execution of a binding contract of sale and purchase, a seller and
 17-5    any agent, representative, or person acting on the seller's behalf
 17-6    may modify the notice by substitution of the words 'January 1,
 17-7    ______' for the words 'this date' and place the correct calendar
 17-8    year in the appropriate space."
 17-9          (c)  The prescribed notice for districts located in whole or
17-10    in part within the corporate limits of a municipality shall be
17-11    executed by the seller and shall read as follows:
17-12          "The real property, described below, that you are about to
17-13    purchase is located in the _____ District.  The district has taxing
17-14    authority separate from any other taxing authority and may, subject
17-15    to voter approval, issue an unlimited amount of bonds and levy an
17-16    unlimited rate of tax in payment of such bonds.  As of this date,
17-17    the rate of taxes levied by the district on real property located
17-18    in the district is $_______ on each $100 of assessed valuation.  If
17-19    the district has not yet levied taxes, the most recent projected
17-20    rate of tax, as of this date, is $_______ on each $100 of assessed
17-21    valuation.  The total amount of bonds approved by the voters and
17-22    which have been or may, at this date, be issued (excluding
17-23    refunding bonds and any bonds or portion of bonds issued payable
17-24    solely from revenues received or expected to be received under a
17-25    contract with a governmental entity) is $_________, and the
17-26    aggregate initial principal amounts of all bonds issued for one or
17-27    more of the specified facilities of the district and payable in
 18-1    whole or in part from property taxes (excluding refunding bonds and
 18-2    any bonds or portion of bonds issued payable solely from revenues
 18-3    received or expected to be received under a contract with a
 18-4    governmental entity) is $________.
 18-5          "The district has the authority to adopt and impose a standby
 18-6    fee on property in the district that has water, sanitary sewer, or
 18-7    drainage facilities and services available but not connected and
 18-8    which does not have a house, building, or other improvement located
 18-9    thereon and does not substantially utilize the utility capacity
18-10    available to the property.  The district may exercise the authority
18-11    without holding an election on the matter.  As of this date, the
18-12    most recent amount of the standby fee is $________.  An unpaid
18-13    standby fee is a personal obligation of the person that owned the
18-14    property at the time of imposition and is secured by a lien on the
18-15    property.  Any person may request a certificate from the district
18-16    stating the amount, if any, of unpaid standby fees on a tract of
18-17    property in the district.
18-18          "The district is located in whole or in part within the
18-19    City(s) of _______________.  District taxpayers are subject to the
18-20    taxes of the city(s) in addition to any district taxes during the
18-21    life of the district.  Generally, an in-city district can be
18-22    dissolved by city ordinance without the consent of the district or
18-23    the voters of the district, subject to applicable laws.
18-24          "The purpose of this district is to provide water, sewer,
18-25    drainage, or flood control facilities and services within the
18-26    district through the issuance of bonds payable in whole or in part
18-27    from property taxes.  The cost of these utility facilities is not
 19-1    included in the purchase price of your property, and these utility
 19-2    facilities are owned or to be owned by the district.  The legal
 19-3    description of the property you are acquiring is as follows:
 19-4    ___________________________________________________________________
 19-5                                          _______________________(Date)
 19-6                                          _____________________________
 19-7                                                    Signature of Seller
 19-8          PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
 19-9    IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.  THE DISTRICT
19-10    ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
19-11    THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
19-12    TAX RATES ARE APPROVED BY THE DISTRICT.  PURCHASER IS ADVISED TO
19-13    CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
19-14    PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
19-15          "The undersigned purchaser hereby acknowledges receipt of the
19-16    foregoing notice at or prior to execution of a binding contract for
19-17    the purchase of the real property described in such notice or at
19-18    closing of purchase of the real property.
19-19    ___________________________________________________________________
19-20                                          _______________________(Date)
19-21                                          _____________________________
19-22                                                 Signature of Purchaser
19-23          "(Note:  Correct district name, tax rate, bond amounts, and
19-24    legal description are to be placed in the appropriate space.)
19-25    Except for notices included as an addendum or paragraph of a
19-26    purchase contract, the notice shall be executed by the seller and
19-27    purchaser, as indicated.  If the district does not propose to
 20-1    provide one or more of the specified facilities and services, the
 20-2    appropriate purpose may be eliminated.  If the district has not yet
 20-3    levied taxes, a statement of the district's most recent projected
 20-4    rate of tax is to be placed in the appropriate space.  If the
 20-5    district does not have approval from the commission to adopt and
 20-6    impose a standby fee, the second paragraph of the notice may be
 20-7    deleted.  For the purposes of the notice form required to be given
 20-8    to the prospective purchaser before execution of a binding contract
 20-9    of sale and purchase, a seller and any agent, representative, or
20-10    person acting on the seller's behalf may modify the notice by
20-11    substitution of the words 'January 1, _____' for the words 'this
20-12    date' and place the correct calendar year in the appropriate
20-13    space."
20-14          (d)  The prescribed notice for districts not located in whole
20-15    or in part within the corporate limits of a municipality, or in
20-16    whole or in part in the extraterritorial jurisdiction of one or
20-17    more home-rule municipalities, shall be executed by the seller and
20-18    shall read as follows:
20-19          "The real property, described below, that you are about to
20-20    purchase is located in the _____ District.  The district has taxing
20-21    authority separate from any other taxing authority and may, subject
20-22    to voter approval, issue an unlimited amount of bonds and levy an
20-23    unlimited rate of tax in payment of such bonds.  As of this date,
20-24    the rate of taxes levied by the district on real property located
20-25    in the district is $_______ on each $100 of assessed valuation.  If
20-26    the district has not yet levied taxes, the most recent projected
20-27    rate of tax, as of this date, is $_______ on each $100 of assessed
 21-1    valuation.  The total amount of bonds approved by the voters and
 21-2    which have been or may, at this date, be issued (excluding
 21-3    refunding bonds and any bonds or portion of bonds issued payable
 21-4    solely from revenues received or expected to be received under a
 21-5    contract with a governmental entity) is $_________, and the
 21-6    aggregate initial principal amounts of all bonds issued for one or
 21-7    more of the specified facilities of the district and payable in
 21-8    whole or in part from property taxes (excluding refunding bonds and
 21-9    any bonds or portion of bonds issued payable solely from revenues
21-10    received or expected to be received under a contract with a
21-11    governmental entity) is $________.
21-12          "The district has the authority to adopt and impose a standby
21-13    fee on property in the district that has water, sanitary sewer, or
21-14    drainage facilities and services available but not connected and
21-15    which does not have a house, building, or other improvement located
21-16    thereon and does not substantially utilize the utility capacity
21-17    available to the property.  The district may exercise the authority
21-18    without holding an election on the matter.  As of this date, the
21-19    most recent amount of the standby fee is $________.  An unpaid
21-20    standby fee is a personal obligation of the person that owned the
21-21    property at the time of imposition and is secured by a lien on the
21-22    property.  Any person may request a certificate from the district
21-23    stating the amount, if any, of unpaid standby fees on a tract of
21-24    property in the district.
21-25          "The purpose of this district is to provide water, sewer,
21-26    drainage, or flood control facilities and services within the
21-27    district through the issuance of bonds payable in whole or in part
 22-1    from property taxes.  The cost of these utility facilities is not
 22-2    included in the purchase price of your property, and these utility
 22-3    facilities are owned or to be owned by the district.  The legal
 22-4    description of the property you are acquiring is as follows:
 22-5    ___________________________________________________________________
 22-6                                          _______________________(Date)
 22-7                                          _____________________________
 22-8                                                    Signature of Seller
 22-9          PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
22-10    IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME.  THE DISTRICT
22-11    ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
22-12    THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
22-13    TAX RATES ARE APPROVED BY THE DISTRICT.  PURCHASER IS ADVISED TO
22-14    CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
22-15    PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
22-16          "The undersigned purchaser hereby acknowledges receipt of the
22-17    foregoing notice at or prior to execution of a binding contract for
22-18    the purchase of the real property described in such notice or at
22-19    closing of purchase of the real property.
22-20    ___________________________________________________________________
22-21                                          _______________________(Date)
22-22                                          _____________________________
22-23                                                 Signature of Purchaser
22-24          "(Note:  Correct district name, tax rate, bond amounts, and
22-25    legal description are to be placed in the appropriate space.)
22-26    Except for notices included as an addendum or paragraph of a
22-27    purchase contract, the notice shall be executed by the seller and
 23-1    purchaser, as indicated.  If the district does not propose to
 23-2    provide one or more of the specified facilities and services, the
 23-3    appropriate purpose may be eliminated.  If the district has not yet
 23-4    levied taxes, a statement of the district's most recent projected
 23-5    rate of tax is to be placed in the appropriate space.  If the
 23-6    district does not have approval from the commission to adopt and
 23-7    impose a standby fee, the second paragraph of the notice may be
 23-8    deleted.  For the purposes of the notice form required to be given
 23-9    to the prospective purchaser prior to execution of a binding
23-10    contract of sale and purchase, a seller and any agent,
23-11    representative, or person acting on the seller's behalf may modify
23-12    the notice by substitution of the words 'January 1, _____' for the
23-13    words 'this date' and place the correct calendar year in the
23-14    appropriate space."
23-15          (e)  If the law regarding annexation or district dissolution
23-16    is changed, causing inaccuracies in the content of the notices as
23-17    provided by this section, the district shall revise the content of
23-18    the notice to accurately reflect the current law.
23-19          (f)  The notice required by this section shall be given to
23-20    the prospective purchaser prior to execution of a binding contract
23-21    of sale and purchase either separately or as an addendum or
23-22    paragraph of a purchase contract.  In the event a contract of
23-23    purchase and sale is entered into without the seller providing the
23-24    notice required by this subsection, the purchaser shall be entitled
23-25    to terminate the contract.  If, however, the seller furnishes the
23-26    required notice at or prior to closing the purchase and sale
23-27    contract and the purchaser elects to close even though such notice
 24-1    was not timely furnished prior to execution of the contract, it
 24-2    shall be conclusively presumed that the purchaser has waived all
 24-3    rights to terminate the contract and recover damages or other
 24-4    remedies or rights under the provisions of this section.
 24-5    Notwithstanding any provision of this subchapter to the contrary,
 24-6    all sellers, title companies, and examining attorneys, and any
 24-7    agent, representative, or person acting on their behalf, shall not
 24-8    be liable for damages under the provisions of either Subsection (o)
 24-9    [(l)] or (p) [(m)] or liable for any other damages to any person
24-10    for failure to provide the notice required by this section to a
24-11    purchaser prior to execution of a binding contract of a purchase
24-12    and sale when the district has not filed the information form and
24-13    map or plat as required under Section 49.455.
24-14          (g) [(d)]  The purchaser shall sign the notice or purchase
24-15    contract including such notice to evidence the receipt of notice.
24-16          (h) [(e)]  At the closing of purchase and sale, a separate
24-17    copy of such notice with current information shall be executed by
24-18    the seller and purchaser, acknowledged, and thereafter recorded in
24-19    the deed records of the county in which the property is located.
24-20    For the purposes of this section, all sellers, title companies, and
24-21    examining attorneys, and any agent, representative, or person
24-22    acting on their behalf, shall be entitled to rely on the accuracy
24-23    of the information form and map or plat as last filed by each
24-24    district under Section 49.455 or the information contained in or
24-25    shown on the notice form issued by the district under Section
24-26    49.453 in completing the notice form to be executed by the seller
24-27    and purchaser at the closing of purchase and sale.  Any information
 25-1    taken from the information form or map or plat as last filed by
 25-2    each district and the information contained in or shown on the
 25-3    notice form issued by the district under Section 49.453 shall be,
 25-4    for purposes of this section, conclusively presumed as a matter of
 25-5    law to be correct.  All subsequent sellers, purchasers, title
 25-6    insurance companies, examining attorneys, and lienholders shall be
 25-7    entitled to rely upon the information form and map or plat filed by
 25-8    the district or the notice form issued by the district under
 25-9    Section 49.453.
25-10          (i) [(f)]  For the purposes of this section, an executory
25-11    contract of purchase and sale having a performance period of more
25-12    than six months shall be considered a sale under Subsection (a).
25-13          (j) [(g)]  For the purposes of the notice form to be given to
25-14    the  prospective purchaser prior to execution of a binding contract
25-15    of sale and purchase, a seller and any agent, representative, or
25-16    person acting in the seller's behalf may modify the notice by
25-17    substitution of the words "January 1, ____" for the words "this
25-18    date" and place the correct calendar year in the appropriate space.
25-19    All sellers, and all persons completing the prescribed notice in
25-20    the sellers' behalf, shall be entitled to rely on the information
25-21    contained in or shown on the information form and map or plat filed
25-22    of record by the district under Section 49.455 in completing the
25-23    prescribed form to be given to the prospective purchaser prior to
25-24    execution of a binding contract of sale and purchase.  Except as
25-25    otherwise provided in Subsection (h) [(e)], any information taken
25-26    from the information form or map or plat filed of record by the
25-27    district in effect as of January 1 of each year shall be, for
 26-1    purposes of the notice to be given to the prospective purchaser
 26-2    prior to execution of a binding contract of sale and purchase,
 26-3    conclusively presumed as a matter of law to be correct for the
 26-4    period January 1 through December 31 of such calendar year.  A
 26-5    seller and any persons completing the prescribed notice in the
 26-6    seller's behalf may provide more recent information, if available,
 26-7    than the information contained in or shown on the information form
 26-8    and map or plat filed of record by the district under Section
 26-9    49.455 in effect as of January 1 of each year in completing the
26-10    prescribed form to be given to the purchaser prior to execution of
26-11    a binding contract of sale and purchase.  Nothing contained in the
26-12    preceding sentence shall be construed to create an affirmative duty
26-13    on the part of a seller or any persons completing the prescribed
26-14    notice in the seller's behalf to provide more recent information
26-15    than the information taken from the information form and map or
26-16    plat filed of record by the district as of January 1 of each year
26-17    in completing the prescribed notice to be given to the purchaser
26-18    prior to execution of a binding contract of sale and purchase.  All
26-19    subsequent sellers, purchasers, title insurance companies,
26-20    examining attorneys, and lienholders shall be entitled to rely upon
26-21    the information form and map or plat filed by the district.
26-22          (k) [(h)]  If such notice is given at closing as provided in
26-23    Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
26-24    successors, or assigns, shall not be entitled to maintain any
26-25    action for damages or maintain any action against a seller, title
26-26    insurance company, or lienholder, or any agent, representative, or
26-27    person acting in their behalf, by reason of use by the seller of
 27-1    the information filed for record by the district or reliance by the
 27-2    seller on the filed plat and filed legal description of the
 27-3    district in determining whether the property to be sold and
 27-4    purchased is within the district.  No action may be maintained
 27-5    against any title company for failure to disclose the inclusion of
 27-6    the described real property within a district when the district has
 27-7    not filed for record the information form, map, or plat with the
 27-8    clerk of the county or counties in which the district is located.
 27-9          (l) [(i)]  Any purchaser who purchases any real property in a
27-10    district and who thereafter sells or conveys the same shall on
27-11    closing of such subsequent sale be conclusively considered as
27-12    having waived any prior right to damages under this section.
27-13          (m) [(j)]  It is the express intent of this section that all
27-14    sellers, title insurance companies, examining attorneys, vendors of
27-15    property and tax information, real estate brokers, and lienholders,
27-16    and any agent, representative, or person acting on their behalf,
27-17    shall be entitled to rely on the accuracy of the information form
27-18    and map or plat as last filed by each district or the information
27-19    contained in or shown on the notice form issued by the district
27-20    under Section 49.453, or for the purposes of the notice to be given
27-21    the purchaser prior to execution of a binding contract of sale and
27-22    purchase the information contained in or shown on the information
27-23    form and map or plat filed of record by the district in effect as
27-24    of January 1 of each year for the period January 1 through December
27-25    31 of such calendar year.
27-26          (n) [(k)]  Except as otherwise provided in Subsection (f)
27-27    [(c)], if any sale or conveyance of real property within a district
 28-1    is not made in compliance with the provisions of this section, the
 28-2    purchaser may institute a suit for damages under the provisions of
 28-3    either Subsection (o) [(l)] or (p) [(m)].
 28-4          (o) [(l)]  A purchaser of real property covered by the
 28-5    provisions of this section, if the sale or conveyance of the
 28-6    property is not made in compliance with this section, may institute
 28-7    a suit for damages in the amount of all costs relative to the
 28-8    purchase of the property plus interest and reasonable attorney's
 28-9    fees.  The suit for damages may be instituted jointly or severally
28-10    against the person, firm, corporation, partnership, organization,
28-11    business trust, estate, trust, association, or other legal entity
28-12    that sold or conveyed the property to the purchaser.  Following the
28-13    recovery of damages under this subsection, the amount of the
28-14    damages shall first be paid to satisfy all unpaid obligations on
28-15    each outstanding lien or liens on the property and the remainder of
28-16    the damage amount shall be paid to the purchaser.  On payment of
28-17    all damages respectively to the lienholders and purchaser, the
28-18    purchaser shall reconvey the property to the seller.
28-19          (p) [(m)]  A purchaser of real property covered by the
28-20    provisions of this section, if the sale or conveyance of the
28-21    property is not made in compliance with this section, may institute
28-22    a suit for damages in an amount not to exceed $5,000, plus
28-23    reasonable attorney's fees.
28-24          (q) [(n)]  A purchaser is not entitled to recover damages
28-25    under both Subsections (o) [(l)] and (p) [(m)], and entry of a
28-26    final decision awarding damages to the purchaser under either
28-27    Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
 29-1    recovering damages under the other subsection.  Notwithstanding any
 29-2    part or provision of the general or special laws or the common law
 29-3    of the state to the contrary, the relief provided under Subsections
 29-4    (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
 29-5    purchaser aggrieved by the seller's failure to comply with the
 29-6    provisions of this section.  Any action for damages shall not,
 29-7    however, apply to, affect, alter, or impair the validity of any
 29-8    existing vendor's lien, mechanic's lien, or deed of trust lien on
 29-9    the property.
29-10          (r) [(o)]  A suit for damages under the provisions of this
29-11    section must be brought within 90 days after the purchaser receives
29-12    the first district tax notice or within four years after the
29-13    property is sold or conveyed to the purchaser, whichever time
29-14    occurs first, or the purchaser loses the right to seek damages
29-15    under this section.
29-16          (s) [(p)]  Notwithstanding any provisions of this subchapter
29-17    to the contrary, a purchaser may not recover damages of any kind
29-18    under this section if that person:
29-19                (1)  purchases an equity in real property and in
29-20    conjunction with the purchase assumes any liens, whether purchase
29-21    money or otherwise; and
29-22                (2)  does not require proof of title by abstract, title
29-23    policy, or any other proof of title.
29-24          SECTION 17.  Section 54.236, Water Code, is amended to read
29-25    as follows:
29-26          Sec. 54.236.  STREET OR SECURITY LIGHTING.       Subject to
29-27    the provisions of this section, a district may purchase, install
 30-1    [accept], operate, and maintain street lighting or security
 30-2    lighting within public utility easements or public rights-of-way
 30-3    within the boundaries of the district.  [Such street or security
 30-4    lighting facilities must have been constructed by an owner or
 30-5    developer of property within the district and must have been
 30-6    required by a city as a condition to the city granting its consent
 30-7    to the creation of the district pursuant to Section 54.016 of this
 30-8    code.]  A district may not issue bonds supported by ad valorem
 30-9    taxes to pay for the purchase, installation, [development] and
30-10    maintenance of street or security lighting.
30-11          SECTION 18.  Section 54.772(1), Water Code, is amended to
30-12    read as follows:
30-13                (1)  "Recreational facilities" means parks,
30-14    landscaping, parkways, greenbelts, sidewalks, trails, public
30-15    right-of-way beautification projects, and recreational equipment
30-16    and facilities.
30-17          SECTION 19.  Section 54.774(a), Water Code, is amended to
30-18    read as follows:
30-19          (a)  A district may not issue bonds supported by ad valorem
30-20    taxes to pay for the development and maintenance of recreational
30-21    facilities or street lighting.
30-22          SECTION 20.  Section 57.092(a), Water Code, is amended to
30-23    read as follows:
30-24          (a)  The district may enter into all necessary and proper
30-25    contracts and employ all persons and means necessary to purchase,
30-26    acquire, build, construct, complete, carry out, maintain, protect,
30-27    and in case of necessity, add to and rebuild, all works and
 31-1    improvements [within the district] necessary or proper to fully
 31-2    accomplish a reclamation plan lawfully adopted for the district.
 31-3          SECTION 21.  Section 60.350, Water Code, is repealed.
 31-4          SECTION 22.  (a)  The repeal by this Act of Section 60.350,
 31-5    Water Code, does not affect the applicability of Section 49.181,
 31-6    Water Code, to bonds with regard to which an application and report
 31-7    were submitted to the Texas Natural Resource Conservation
 31-8    Commission under Section 49.181(b), Water Code, before the
 31-9    effective date of this Act.  Those bonds are governed by Section
31-10    49.181, Water Code, and Section 60.350, Water Code, continues in
31-11    effect as to those bonds for that purpose.
31-12          (b)  The repeal by this Act of Section 60.350, Water Code,
31-13    does not affect the applicability of Section 49.183, Water Code, to
31-14    bonds issued before the effective date of this Act.  Those bonds
31-15    are governed by Section 49.183, Water Code, and Section 60.350,
31-16    Water Code, continues in effect as to those bonds for that purpose.
31-17          SECTION 23.  This Act takes effect September 1, 1999.
31-18          SECTION 24.  The importance of this legislation and the
31-19    crowded condition of the calendars in both houses create an
31-20    emergency and an imperative public necessity that the
31-21    constitutional rule requiring bills to be read on three several
31-22    days in each house be suspended, and this rule is hereby suspended.