By Lewis of Orange H.B. No. 702
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration and issuing of bonds and other
1-3 instruments of indebtedness of Drainage Districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 56.015, Water Code, is amended to read as
1-6 follows:
1-7 Sec. 56.015. Deposit. (a) Any person filing a petition
1-8 shall deposit with the clerk of the commissioners court [$200 in]
1-9 cash, in an amount to be determined by the county elections
1-10 official, which shall be held by the clerk until the result of the
1-11 election to create the district and issue bonds is officially
1-12 announced.
1-13 (b) If the result of the election favors creating the
1-14 district, the clerk shall return the deposit to the petitioners or
1-15 their agent or attorney, but if the result of the election is
1-16 against the creation of the district, the clerk shall pay the cost
1-17 and expenses of the election from the deposit with vouchers signed
1-18 by the county judge and return the balance of the deposit to the
1-19 petitioners or their agent or attorney.
1-20 SECTION 2. Section 56.032, Water Code, is amended to read as
1-21 follows:
1-22 Sec. 56.032. Authorizing Existing Districts to Operate Under
2-1 Article XVI, Section 59, of the Texas Constitution. (a) Any
2-2 existing district may be authorized to operate under the provisions
2-3 of Article XVI, Section 59, of the Texas Constitution without
2-4 change of name or impairment of obligations.
2-5 (b) To operate under Article XVI, Section 59, of the Texas
2-6 Constitution, the [district] board shall [present the petition and
2-7 make the deposit required by Sections 56.014 of this code.] adopt a
2-8 resolution [The commissioners court, by order] entered in its
2-9 minutes, and shall [give notice and] schedule [hold] a hearing on the
2-10 [petition] resolution. The hearing must be held during the period
2-11 beginning on the 30th day and ending with the 60th day after the
2-12 day the resolution is adopted. The board shall give notice of the
2-13 time and place of the hearing on the resolution by posting a copy
2-14 of the resolution of the board during the 20 day period immediately
2-15 preceding the day of the hearing in five public places in the
2-16 county. One of the copies shall be posted at the court house door
2-17 and the four other copies within the boundaries of the district.
2-18 [as required by Sections 56.017 and 56.018 of this code and may by
2-19 order authorize the district to operate under the provisions of
2-20 Article XVI, Section 59, of the Texas Constitution.]
2-21 (c) Any district operating under the provisions of this
2-22 section, is governed and controlled by the laws under which it was
2-23 organized.
2-24 (d) Limitations imposed by Article III, Section 52, of The
2-25 Constitution and this chapter on debts to be incurred and taxes to
2-26 be levied are not applicable to districts operating under Article
3-1 XVI, Section 59, of the Texas Constitution.
3-2 SECTION 3. Section 56.062, Water Code is amended by adding
3-3 Section 56.062, to read as follows:
3-4 Sec. 56.062. QUALIFICATION OF DIRECTORS. Qualifications to
3-5 serve as a director are governed by Texas Election Code, Section
3-6 141.001(a).
3-7 SECTION 4. Section 56.069, Water Code, is amended to read as
3-8 follows:
3-9 Sec. 56.069. Transfer of Board's Power to Commissioners
3-10 Court. (a) The functions, powers, rights, and duties exercised by
3-11 or relating to the board of any district may be transferred to the
3-12 commissioners court of the county in which the district is wholly
3-13 located, but before the transfer is made, the commissioners court
3-14 and the board must pass resolutions authorizing the transfer. In
3-15 any district in which the board of directors is elected, the
3-16 transfer shall not be made unless such proposition shall first be
3-17 submitted to the qualified voters of such district and the
3-18 proposition adopted.
3-19 (b) After the transfer is made, the commissioners court
3-20 shall be the sole governing body of the district and shall exercise
3-21 the functions, powers, rights, and duties transferred.
3-22 (c) The members of the commissioners court are not entitled
3-23 to receive any compensation for the exercise of these functions,
3-24 powers, rights, and duties.
3-25 (d) On the passage of a resolution at a meeting of the board
3-26 of the district, the commissioners court may be authorized to
4-1 receive an allowance of not more than $150 a month for travel
4-2 expense incurred by the commissioners incident to the discharge of
4-3 their duties as members of the board of the district.
4-4 SECTION 5. Section 56.128, Water Code, is amended to read as
4-5 follows:
4-6 Sec. 56.128. Injuring Drainage Canal or Ditch. Any person
4-7 who willfully fills up, cuts, injures, destroys, or impairs the
4-8 usefulness of any canal, drain, ditch, watercourse, or other work
4-9 constructed, repaired, or improved by a district to drain and
4-10 protect from overflow of water, upon conviction is punishable by
4-11 confinement in the county jail for not more than two months or by a
4-12 fine of not more than [$100] $1,000.
4-13 SECTION 6. Section 56.182, Water Code, is amended to read as
4-14 follows:
4-15 Sec. 56.182. District Funds. (a) The construction and
4-16 maintenance fund consists of money, effects, property, and proceeds
4-17 received by the district from any source except that portion of tax
4-18 collections necessary to pay principal and interest on bonded
4-19 indebtedness.
4-20 (b) The interest and sinking fund consists of that portion
4-21 of tax collections necessary for paying principal and interest on
4-22 bonded indebtedness, and this fund may be invested for the benefit
4-23 of the district [in bonds and securities approved by the attorney
4-24 general] as provided by law.
4-25 (c) Each fund shall be held for the purpose for which it was
4-26 created, and if money is improperly paid from either fund, the
5-1 [commissioners court] board may [have the county treasurer]
5-2 transfer money between the two funds to restore the fund which was
5-3 improperly used.
5-4 SECTION 7. Section 56.202, Water Code, is amended to read as
5-5 follows:
5-6 Sec. 56.202. Issuance of Bonds. When maps, profiles, and
5-7 estimates are filed, the [commissioners court] board of directors
5-8 shall issue an order directing the issuance of bonds sufficient to
5-9 pay for proposed improvements together with necessary, actual, and
5-10 incidental expenses. The bonds may not be issued in an amount
5-11 greater than the amount specified in the order and notice of
5-12 election, and in districts operating under Article III, Section 52,
5-13 of the Texas Constitution, the bonds may not be issued in an amount
5-14 greater than one-fourth of the assessed valuation of the real
5-15 property of the district.
5-16 SECTION 8. Section 56.203, Water Code, is amended to read as
5-17 follows:
5-18 Sec. 56.203. Record Book of Bonds. (a) Before any bonds are
5-19 issued, the [commissioners court] board shall provide a well-bound
5-20 book in which [the county clerk] it shall keep a record of:
5-21 (1) all bonds which have been issued;
5-22 (2) the numbers of the bonds;
5-23 (3) the amount of the bonds;
5-24 (4) the rate of interest on the bonds;
5-25 (5) the date of issuance of the bonds;
5-26 (6) the date on which the bonds are due;
6-1 (7) the place where the bonds are payable;
6-2 (8) the amount received for the bonds;
6-3 (9) the annual rate of assessment to pay interest on
6-4 and provide a sinking fund for the bond; and
6-5 (10) the payment of each bond.
6-6 (b) The [county clerk] board shall keep the book open at all
6-7 times for public inspection by district taxpayers and bondholders.
6-8 [(c) The county clerk is entitled to receive for recording
6-9 district bonds and other instruments the same fees allowed by law
6-10 for recording other similar records.]
6-11 SECTION 9. Section 56.204, Water Code, is amended to read as
6-12 follows:
6-13 Sec. 56.204. Bonds; Requisites. (a) Bonds shall be issued
6-14 in the name of the district, signed by the [county judge] board
6-15 president, and attested by the [county clerk] board secretary, and
6-16 each bond shall have the seal of the [commissioners court] district
6-17 affixed to it.
6-18 (b) The bonds shall be issued in denominations [of not less
6-19 than $100 nor more than $1,000] and shall bear interest [which is
6-20 payable annually or semiannually] as authorized by the board of
6-21 directors.
6-22 (c) The terms of the bonds shall include the time, places,
6-23 manner, and conditions of payment and the rate of interest
6-24 determined and ordered by the [commissioners court] board of
6-25 directors.
6-26 (d) The bonds shall be paid not later than 40 years from the
7-1 date they are issued.
7-2 SECTION 10. Section 56.205, Water Code, is amended to read as
7-3 follows:
7-4 Sec. 56.205. Bonds: Approval. (a) [Before any bonds are
7-5 offered for sale] After the bonds are sold, the district shall
7-6 submit to the attorney general
7-7 (1) a copy of the bonds;
7-8 (2) a certified copy of the [commissioners court]
7-9 board's order levying a tax to pay interest and create a sinking
7-10 fund;
7-11 (3) a statement of the district's total bonded
7-12 indebtedness including the value of the bonds proposed to be issued
7-13 and the value of taxable property in the district as shown by the
7-14 last official assessment of the county appraisal district; and
7-15 (4) other information the attorney general requires.
7-16 (b) The attorney general shall examine the bonds carefully
7-17 and shall certify them if he finds that they conform to the
7-18 constitution and laws of this state and are valid and binding
7-19 obligations of the district.
7-20 SECTION 11. Section 56.207, Water Code, is amended to read
7-21 as follows:
7-22 Sec. 56.207. Bonds: Sale. (a) [When the bonds are
7-23 registered, t]The board [county judge, under the direction of the
7-24 commissioners court,] shall advertise and sell the bonds on the
7-25 best terms and for the best price possible.
7-26 (b) The [county judge] board shall [pay to the county
8-1 treasurer] deposit all money from the sale of the bonds as it is
8-2 received[, and the county treasurer shall place the money in] into
8-3 the construction and maintenance fund [to the credit] of the
8-4 district.
8-5 [(c) The county judge is entitled to receive one-half of one
8-6 percent of the amount received from the sale of bonds sold by him
8-7 as payment for his services.]
8-8 SECTION 12. Section 56.209, Water Code, is amended to read
8-9 as follows:
8-10 Sec. 56.209. Use of Unsold Bonds for Maintenance Purposes.
8-11 If any bonds remain unsold which are not required to complete
8-12 improvements, the [commissioners court] board may enter its consent
8-13 on the public record to sell the bonds and place the proceeds in
8-14 the construction and maintenance fund for use in accomplishing the
8-15 purposes stated in Section 56.242 of this code.
8-16 SECTION 13. Section 56.210, Water Code, is amended to read
8-17 as follows:
8-18 Sec. 56.210. Refunding Bonds. (a) [With the consent of the
8-19 bondholders, a] A district may refund outstanding bonds by issuing
8-20 new [coupon] bonds in [their place] accordance with chapter 1207 of
8-21 the Government Code.
8-22 [(b) Interest is shown by coupons attached to the bonds.
8-23 The commissioners court may pay the interest on the bonds annually
8-24 or semi-annually.]
8-25 [(c) The commissioners court may pay the refunding bonds
8-26 serially, or in any other manner they choose, but in districts
9-1 which are not operating under Article XVI, Section 59, of the Texas
9-2 Constitution, it shall pay the bonds not later than 40 years from
9-3 the date the bonds are issued.]
9-4 [(d)] (b) The district shall issue the bonds in denominations
9-5 [of $100 or a multiple of $100] to be determined by the board, and
9-6 shall levy a tax sufficient to meet the payment of principal and
9-7 interest of the refunding bonds before the bonds are delivered.
9-8 [(e) The commissioners court shall issue refunding bonds in
9-9 the manner provided for other district bonds, and shall deduct any
9-10 sum on hand to the credit of any sinking fund account in
9-11 ascertaining the amount of refunding bonds to be issued. This sum
9-12 shall be applied to the payment of the outstanding bonds.]
9-13 [(f) The commissioners court shall not issue refunding bonds
9-14 until they are approved by the attorney general and registered by
9-15 the comptroller. The comptroller shall not register the refunding
9-16 bonds until the old bonds being replaced are presented to him for
9-17 cancellation. After the comptroller registers the new bonds, he
9-18 shall cancel the old bonds and interest coupons and deliver the new
9-19 bonds to the proper bondholders. The district may present the old
9-20 bonds for cancellation in installments, and the comptroller may
9-21 register and deliver a like amount of the new bonds.]
9-22 [(g) In a district operating under Article XVI, Section 59,
9-23 of the Texas Constitution, if the holders of outstanding bonds do
9-24 not consent to the exchange of their bonds for refunding bonds, the
9-25 refunding bonds may be sold and the proceeds applied to the
9-26 purchase of the outstanding bonds when they become payable under an
10-1 option of prepayment contained in the bonds or when the bondholders
10-2 will accept payment.]
10-3 SECTION 14. Section 56.211, Water Code, is amended to read
10-4 as follows:
10-5 Sec. 56.211. Refunding Bond Election. (a) If indebtedness
10-6 to be refunded includes obligations other than voted bonds, in any
10-7 district operating under Article III, Section 52, or Article XVI,
10-8 Section 59, of the Texas Constitution, before the refunding bonds
10-9 may be issued, a majority of the electors of the district voting at
10-10 an election called for that purpose must vote in favor of issuing
10-11 the refunding bonds and levying a tax to pay for the bonds.
10-12 (b) The [commissioners court] board shall call the election
10-13 and the [clerk] secretary of the [court] board shall give notice of
10-14 the time and places for holding the election.
10-15 (c) The notice shall be signed by the clerk secretary and
10-16 shall
10-17 (1) state the purpose of the election;
10-18 (2) state the proposition to be voted on;
10-19 (3) define the election precincts;
10-20 (4) prescribe the polling places in the district; and
10-21 (5) list the names of the election officers.
10-22 (d) The notice shall be published once a week for three
10-23 consecutive weeks in a newspaper of general circulation in the
10-24 county in which the district is located, but if a newspaper is not
10-25 published in the county, the notice shall be published in the
10-26 nearest county. The first publication shall be at least 20 days
11-1 before the day of the election.
11-2 SECTION 15. Section 56.212, Water Code, is amended to read
11-3 as follows:
11-4 Sec. 56.212. Approval and Issuance of Refunding Bonds.
11-5 (a) If the [commissioners court] board declares the result of the
11-6 election under Section 56.211 of this code to favor the issuance of
11-7 refunding bonds and the levy of a tax to pay for the bonds,
11-8 refunding bonds with the seal of the [commissioners court] district
11-9 affixed to them may be issued in the name of the district. The
11-10 bonds shall be signed by the [county judge] board president,
11-11 attested [by the county clerk] and registered by the [county
11-12 treasurer] board secretary.
11-13 (b) The bonds together with the records relating to them
11-14 shall be submitted to the attorney general for his approval, in
11-15 accordance with Section 49.184, Water Code.
11-16 (c) When the attorney general approves the bonds, they shall
11-17 be delivered to the comptroller who shall register them and deliver
11-18 them in exchange for or on release of the obligations being
11-19 refunded at the time, in the manner, and in the amounts prescribed
11-20 in the order of the [commissioners court] board. If the
11-21 obligations being refunded are evidenced by outstanding securities,
11-22 the comptroller shall cancel the outstanding securities
11-23 concurrently with the registration and delivery of the bonds.
11-24 (d) When the refunding bonds are approved by the attorney
11-25 general and registered and delivered by the comptroller, the bonds
11-26 are valid and binding obligations of the district and are
12-1 incontestable for any cause.
12-2 SECTION 17. Section 56.241, Water Code, is amended to read
12-3 as follows:
12-4 Sec. 56.241. Levy of Taxes to Pay for Bonds. After bonds are
12-5 authorized at an election, the [commissioners court] board shall
12-6 have taxes annually assessed and collected on all property in the
12-7 district sufficient to pay interest and principal on the bonds.
12-8 Taxes collected under this section shall be placed in the interest
12-9 and sinking fund.
12-10 SECTION 17. Section 56.242, Water Code, is amended to read
12-11 as follows:
12-12 Sec. 56.242. Maintenance Tax. (a) [At the same time that
12-13 taxes are levied to pay bonded indebtedness, t]The [commissioners
12-14 court] board shall have a tax assessed and collected on district
12-15 property sufficient to maintain, repair, and preserve district
12-16 improvements and to pay legal debts, demands, and obligations of
12-17 the district, but in districts operating under Article III, Section
12-18 52, of the Texas Constitution, the tax may not be in an amount
12-19 greater than one-half of one percent of the total assessed
12-20 valuation of the district for that year.
12-21 (b) Taxes collected under this section shall be placed in
12-22 the construction and maintenance fund.
12-23 (c) The board may issue negotiable notes payable from this
12-24 Maintenance Tax to pay for the purposes, as provided in (a) herein,
12-25 which notes shall be in negotiable form and be payable over a
12-26 period of time not to exceed five years from the date of issuance.
13-1 These notes do not have to be approved by the Commission. A
13-2 district may not have outstanding, at any one time, notes in excess
13-3 of $3,000,000 under this section.
13-4 (d) The board may borrow money for the purpose of paying
13-5 maintenance expenses and may evidence those loans with negotiable
13-6 notes, except that the maximum debt service on all notes issued
13-7 pursuant to this subsection (d) may not exceed in any fiscal year
13-8 of a district an amount which could be paid from the proceeds of
13-9 one fourth of the maximum tax the district is authorized by law to
13-10 levy on the date any notes are issued. The notes may be payable
13-11 from and secured by a lien on and pledge of any available funds of
13-12 the district including the proceeds of a maintenance tax. The term
13-13 maintenance expenses as used in subsection (d) shall mean any
13-14 lawful expenditure of a district other than principal and interest
13-15 on bonds. The term includes all costs to enlarge, deepen, widen
13-16 and straighten any existing drainage canal, drain ditch, water
13-17 course or other work constructed, repaired or improved by a
13-18 district. Notes issued pursuant to this subsection (d) may be
13-19 issued to mature in not more than 20 years from their date and if
13-20 issued for a term longer than one year must be treated as a "debt"
13-21 as defined in section 26.012, Tax Code. The provisions of this
13-22 subsection (d) are cumulative of and in addition to the powers of a
13-23 district to issue bonds of otherwise incur debt.
13-24 SECTION 18. Section 56.249, Water Code, is amended to read
13-25 as follows:
13-26 Sec. 56.249. Authorizing Taxation on the Benefit Basis for
14-1 Existing District. (a) A district [operating under Article XVI,
14-2 Section 59, of the Texas Constitution,] may levy taxes on the
14-3 benefit basis as provided in this section.
14-4 (b) Any person may present to the [commissioners court]
14-5 board a petition, signed by 75 of the resident freehold taxpayers
14-6 of the district whose land would be affected or by one-third of the
14-7 freehold resident taxpayers of the district whose land would be
14-8 affected if there are less than 75 in the district, requesting that
14-9 taxes of the district be levied on the benefit basis and showing
14-10 that the levy of taxes on the benefit basis will be fair and
14-11 equitable to all landowners in the district.
14-12 (c) At the same meeting at which the petition is presented,
14-13 the [commissioners court] board shall schedule a hearing on the
14-14 petition for either a regular meeting or a special meeting called
14-15 for that purpose to be held during the period beginning on the 30th
14-16 day and ending with the 60th day after the day the petition is
14-17 presented.
14-18 (d) The [commissioners court] board shall [order the clerk
14-19 to] give notice of the time and place of the hearing by posting a
14-20 copy of the petition and the order of the [commissioners court]
14-21 board at five public places in the county during the 20-day period
14-22 immediately preceding the day of the hearing. The [clerk] board
14-23 shall post one of the copies at the courthouse door and the other
14-24 four copies at four places within the boundaries of the district[,
14-25 and the district shall pay the clerk $1 for each notice he posts
14-26 and five cents a mile for each mile traveled in posting the
15-1 notices].
15-2 (e) At the hearing, any person whose land would be affected
15-3 may appear before the [commissioners court] board and may support
15-4 or oppose the levy of taxes on a benefit basis and may offer
15-5 testimony to show whether or not the levy of taxes on the benefit
15-6 basis will be fair and equitable to landowners in the district.
15-7 The [commissioners court] board has exclusive jurisdiction to hear
15-8 and determine this issue and matters relating to it and has
15-9 exclusive jurisdiction in all subsequent proceedings. The
15-10 [commissioners court] board may adjourn the hearing from day to
15-11 day, and judgments of the [commissioners court] board are final.
15-12 (f) If the [commissioners court] board finds that levying
15-13 taxes on the benefit basis will not be fair and equitable to
15-14 landowners in the district, an order shall be entered dismissing
15-15 the petition, and the district shall continue to levy taxes on an
15-16 ad valorem basis, but if the [commissioners court] board finds that
15-17 levying taxes on the benefit basis will be fair and equitable to
15-18 landowners in the district, the [commissioners court] board shall
15-19 order an election to be held in the district.
15-20 (g) An election to approve the levy of taxes on the benefit
15-21 basis must be held [during the period beginning of the 30th day and
15-22 ending with the 60th day after the date of the election order] at
15-23 the earliest legal time, no earlier than 30 days after the board
15-24 orders an election. Notice of the election shall be given in the
15-25 same manner as notice is given for the hearing on the petition.
15-26 The [commissioners court] board shall name polling places within
16-1 the district and shall appoint judges and other necessary election
16-2 officers. The ballots shall be printed to provide for voting for
16-3 or against the following proposition: "The levy of taxes in the
16-4 district on the benefit basis."
16-5 (h) At least two-thirds of those persons voting in the
16-6 election must vote in favor of the proposition for it to carry.
16-7 (i) If the proposition carries at the election, the order of
16-8 the [commissioners court] board canvassing the election shall
16-9 provide that taxes of the district are to be levied on the benefit
16-10 basis, but if the proposition fails to carry at the election, the
16-11 order of the [commissioners court] board canvassing the election
16-12 shall provide that taxes of the district are to continue to be
16-13 levied on an ad valorem basis.
16-14 SECTION 19. Section 56.251, Water Code, is amended to read
16-15 as follows:
16-16 Sec. 56.251. Determining Acreage in the District. (a) In
16-17 districts levying taxes on the benefit basis, the [commissioners
16-18 court] board shall appoint three freehold taxpaying voters in the
16-19 [county] district as a [board] committee to determine the number of
16-20 acres of land owned by each landowner in the district. The person
16-21 appointed by the [commissioners court] board shall qualify by
16-22 taking an oath to fairly and impartially hold hearings and
16-23 determine acreage.
16-24 (b) The [board] committee to determine acreage shall give
16-25 notice of the time and place of the hearing on the acreage before
16-26 the 10-day period immediately preceding the day of the hearing.
17-1 (c) At the hearing each landowner may testify about the
17-2 amount of land owned by him in the district. The [board] committee
17-3 has final jurisdiction to determine the exact acreage of each
17-4 landowner in the district.
17-5 (d) After the [board] committee makes its determination, the
17-6 land in the district shall be annually placed on the tax rolls
17-7 according to the acreage determined without rendition of taxes.
17-8 SECTION 20. Section 56.292, Water Code, is amended to read
17-9 as follows:
17-10 Sec. 56.292. Petition. At a regular meeting of the
17-11 [commissioners court] board, any [person] resident freehold
17-12 taxpayer of the district may present a petition signed by at least
17-13 [50 of the resident freehold taxpayers] 5% of the qualified voters
17-14 of the district, or if there are less than 100 resident freehold
17-15 taxpayers in the district, then by one-third of them requesting the
17-16 dissolution of the district, and upon verification of the petition
17-17 signatures, the [commissioners court] board shall order an election
17-18 to be held in the district at the earliest legal time to determine
17-19 whether or not the district should be dissolved.
17-20 SECTION 21. Section 56.293, Water Code, is amended to read
17-21 as follows:
17-22 Sec. 56.293. Deposit. (a) Any person filing a petition
17-23 shall deposit with the [county clerk $200] board an amount
17-24 sufficient to pay the cost of conducting an election within the
17-25 district [in cash] which shall be held by the [county clerk] board
17-26 until the result of the election to dissolve the district is
18-1 officially announced and entered in the record of the
18-2 [commissioners court] district.
18-3 (b) If the result of the election favors dissolving the
18-4 district, the [county clerk] board shall return the deposit to the
18-5 petitioners or their agent or attorney, and the cost and expenses
18-6 of holding the election shall be [charged to] paid by the district
18-7 [and collected as other debts in this subchapter], but if the
18-8 result of the election is against dissolving the district, the
18-9 [county clerk] board shall pay the cost and expenses of the
18-10 election from the deposit [with vouchers signed by the county
18-11 judge] and return the balance of the deposit to the petitioners or
18-12 their agent or attorney.
18-13 SECTION 22. Section 56.295, Water Code, is amended to read
18-14 as follows:
18-15 Sec. 56.295. Result of the Election. (a) The returns of the
18-16 election shall be made and the votes canvassed as provided in this
18-17 chapter.
18-18 (b) If the proposition carries, the [commissioners court]
18-19 board shall declare the result and enter it in its minutes
18-20 substantially as follows: "__________ and __________ others having
18-21 petitioned for the dissolution of ______________ County Drainage
18-22 District No. ______; an election having been held in the district
18-23 on ______________; and a two-thirds majority of the votes cast in
18-24 the election having favored dissolution of the district; now,
18-25 therefore, the [commissioners court] board of directors declares
18-26 that ______________ Drainage District No. ______ is dissolved."
19-1 (c) If the proposition fails to carry, another election for
19-2 the same purpose may not be held for at least two years after the
19-3 results of the election are declared.
19-4 SECTION 23. Section 56.311, Water Code, is amended to read
19-5 as follows:
19-6 Sec. 56.311. Final Report of Trustee. (a) When all claims
19-7 against the district are paid and all costs and expenses incurred
19-8 in controlling and managing the district are satisfied, the trustee
19-9 shall file with the commissioners court his account for final
19-10 settlement.
19-11 (b) The trustee's account shall include a complete statement
19-12 of all money received and paid out, of all property controlled and
19-13 disposed of by the trustee, and of all other matters relating to
19-14 management of the district's affairs.
19-15 (c) On approval of the account, the commissioners court
19-16 shall direct the trustee to turn over to persons entitled to it as
19-17 found by the commissioners court all money and property remaining
19-18 in the control of the trustee, and on compliance with this order,
19-19 the trustee shall report to the commissioners court, and the
19-20 commissioners court shall enter an order discharging the trustee
19-21 and his bondsman and closing the trust estate.
19-22 (d) Prior to the commissioners court entering an order
19-23 discharging the trustee, his bondsman, and closing the trust
19-24 estate, the commissioners court shall order all transactions of the
19-25 trustee audited by an independent certified public accountant. A
19-26 copy of said audit shall be filed with the commissioners court, a
20-1 copy shall be filed with the Texas Natural Resources Conservation
20-2 Commission, and a copy shall be supplied the trustee.
20-3 SECTION 24. Section 56.137, Section 56.206, and Section
20-4 56.208, Water Code, are hereby repealed in their entirety
20-5 SECTION 25. SUBCHAPTER K. CONSOLIDATION OF DISTRICTS, Water
20-6 Code, is amended and repealed as follows:
20-7 [SUBCHAPTER K. CONSOLIDATION OF DISTRICTS]
20-8 [Section 56.801. PETITION. Consolidation is initiated by a
20-9 petition requesting an election on the question. The petition must
20-10 be signed by registered voters residing in either district proposed
20-11 to be consolidated equal in number to at least five percent of the
20-12 number of votes received in the district by all candidates in the
20-13 most recent gubernatorial general election. The petition must be
20-14 presented to the commissioners court.]
20-15 [Section 56.802. ELECTION ORDER; NOTICE. (a) If the
20-16 commissioners court determines the petition meets the requirements
20-17 of Section 56.801, the commissioners court shall:]
20-18 [(1) issue an order for an election to be held on the
20-19 same day in each district included in the proposed consolidated
20-20 district; and]
20-21 [(2) give notice of the election.]
20-22 [(b) The ballot in the election shall be printed to permit
20-23 voting for or against the proposition: "Consolidation of
20-24 __________ (names of districts) into a single drainage district."]
20-25 [Section 56.803. CANVASS; RESULT. (a) The commissioners
20-26 court shall canvass the returns of the election. The commissioners
21-1 shall publish the results separately for each district.]
21-2 [(b) If the majority of votes cast in each district favor
21-3 the consolidation, the commissioners court shall declare the
21-4 districts consolidated.]
21-5 [Section 56.804. TITLE TO PROPERTY: ASSUMPTION OF DEBT.
21-6 Title to all property of the consolidating districts vests in the
21-7 consolidated district. The consolidated district assumes and is
21-8 liable for the outstanding indebtedness of the consolidating
21-9 districts.]
21-10 SECTION 26. This act takes effect September 1, 2001.
21-11 SECTION 27. The importance of this legislation and the
21-12 crowded condition of the calendars in both houses create an
21-13 emergency and an imperative public necessity that the
21-14 constitutional rule requiring bills to be read on three several
21-15 days in each house be suspended, and this rule is hereby suspended.