By Lewis of Orange H.B. No. 2817
77R12293 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain laws governing water districts and nonprofit
1-3 water or sewer service corporations; creating a criminal offense.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 49.068, Water Code, is amended to read as
1-6 follows:
1-7 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. (a) The
1-8 provisions of this chapter pertaining to bids and the Local
1-9 Government Code notwithstanding, a district may purchase property
1-10 from any governmental entity by negotiated contract without the
1-11 necessity of securing appraisals or advertising for bids.
1-12 (b) A municipality may sell all or a portion of a water or
1-13 sewer system owned by the municipality to a district without the
1-14 approval required by Section 1502.055(a), Government Code, or by
1-15 Section 402.016, Local Government Code, if the district purchasing
1-16 the system is operating under the authority of Section 59, Article
1-17 XVI, Texas Constitution.
1-18 SECTION 2. Section 49.102, Water Code, is amended by
1-19 relettering Subsection (i) as Subsection (j) and by adding a new
1-20 Subsection (i) to read as follows:
1-21 (i) A district, at an election required under Subsection
1-22 (a), may submit to the voters of the district the proposition of
1-23 whether the district should implement a plan authorized by Section
1-24 49.351 for a fire department.
2-1 (j) The provisions of this section shall not be applicable
2-2 to any district exercising the powers of Chapter 375, Local
2-3 Government Code, or any district created by a special Act of the
2-4 legislature that does not require a confirmation election.
2-5 SECTION 3. Section 49.108(e), Water Code, is amended to read
2-6 as follows:
2-7 (e) A district that is required under Section 49.181 to
2-8 obtain approval by the commission of the district's issuance of
2-9 bonds must obtain approval by the executive director before the
2-10 district enters into an obligation under this section to collect
2-11 tax for debt that exceeds three years. This subsection does not
2-12 apply to contract taxes that are levied to pay for a district's
2-13 share of bonds that have been issued by another district and
2-14 approved by the commission or bonds that have been issued by a
2-15 municipality.
2-16 SECTION 4. Section 49.211, Water Code, is amended by adding
2-17 Subsection (e) to read as follows:
2-18 (e) A district that is authorized by law to engage in
2-19 drainage or flood control activities may include among the
2-20 district's land, works, improvements, facilities, plants,
2-21 equipment, and appliances the following areas and projects
2-22 associated with drainage or flood control projects of the district:
2-23 (1) stormwater retention or detention lands and
2-24 projects;
2-25 (2) sedimentation basins or other stormwater quality
2-26 control facilities or structures;
2-27 (3) floodplain and wetlands mitigation lands and
3-1 projects;
3-2 (4) habitat reconstruction or restoration lands and
3-3 projects; and
3-4 (5) any temporary, permanent, or constant- or
3-5 variable-level impoundments of water related to projects described
3-6 by this subsection.
3-7 SECTION 5. Section 49.212(d), Water Code, is amended to read
3-8 as follows:
3-9 (d) Notwithstanding any provision of law to the contrary, a
3-10 district that charges a fee that is an impact fee as described in
3-11 Section 395.001(4), Local Government Code, must comply with Chapter
3-12 395, Local Government Code. A charge or fee by a district for
3-13 construction, installation, or inspection of a tap or connection to
3-14 district water, sanitary sewer, or drainage facilities, including
3-15 all necessary service lines and meters, or for wholesale facilities
3-16 that serve such water, sanitary sewer, or drainage facilities that
3-17 (i) does not exceed three times the actual and reasonable costs to
3-18 the district for such tap or connection, [or] (ii) if made to a
3-19 nontaxable entity for retail or wholesale service, does not exceed
3-20 the actual costs to the district for such work and for all
3-21 facilities that are necessary to provide district services to such
3-22 entity and that are financed or are to be financed in whole or in
3-23 part by tax-supported or revenue bonds of the district, or (iii) if
3-24 made by a district for retail or wholesale service on land that, at
3-25 the time of platting, was not being provided with water or
3-26 wastewater service by the district, shall not be deemed to be an
3-27 impact fee under Chapter 395, Local Government Code. A district
4-1 may pledge revenue of its utility system to pay the principal of or
4-2 interest on bonds issued to construct the capital improvements for
4-3 which the fee was imposed under this subsection, and the revenue
4-4 from the fees is considered to be revenue of the district's utility
4-5 system for purposes of the district's bond covenants.
4-6 SECTION 6. Section 49.215, Water Code, is amended by adding
4-7 Subsection (g) to read as follows:
4-8 (g) If a district contracts with a municipality to provide
4-9 all or part of the water or wastewater services to the
4-10 municipality, the municipality may issue bonds payable from the
4-11 revenue of its water and wastewater system to provide money to make
4-12 payments owed by the municipality to the district under the
4-13 contract.
4-14 SECTION 7. Section 49.218, Water Code, is amended by adding
4-15 Subsection (e) to read as follows:
4-16 (e) A district or water supply corporation may issue bonds,
4-17 notes, or other obligations to acquire property as authorized by
4-18 this section.
4-19 SECTION 8. The heading to Section 49.226, Water Code, is
4-20 amended to read as follows:
4-21 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
4-22 PERSONAL PROPERTY.
4-23 SECTION 9. Sections 49.226(b)-(e), Water Code, are amended to
4-24 read as follows:
4-25 (b) Any property dedicated to or acquired by the district
4-26 without expending district funds may be abandoned or released to
4-27 the original grantor, the grantor's heirs, assigns, executors, or
5-1 successors upon terms and conditions deemed necessary or
5-2 advantageous to the district and without receiving compensation for
5-3 such abandonment or release. District property may also be
5-4 abandoned, released, exchanged, or transferred to another district,
5-5 municipality, county, countywide agency, or authority upon terms
5-6 and conditions deemed necessary or advantageous to the district.
5-7 Narrow strips of property resulting from boundary or surveying
5-8 conflicts or similar causes, or from insubstantial encroachments by
5-9 abutting property owners, or property of larger configuration that
5-10 has been subject to encroachments by abutting property owners for
5-11 more than 25 years may be abandoned, released, exchanged, or
5-12 transferred to such abutting owners upon terms and conditions
5-13 deemed necessary or advantageous to the district. Chapter 272,
5-14 Local Government Code, shall not apply to this section
5-15 [subsection].
5-16 (c) Before either a public or a private sale of real
5-17 property [not required by the district], the district shall give
5-18 notice of the intent to sell by publishing notice once a week for
5-19 two consecutive weeks in one or more newspapers with general
5-20 circulation in the district.
5-21 (d) If the district has outstanding bonds secured by a
5-22 pledge of tax revenues, the proceeds of the sale of property [not
5-23 required by the district] shall be applied to retire outstanding
5-24 bonds of the district [when required by the district's applicable
5-25 bond resolutions].
5-26 (e) If the district does not have any outstanding bonds, the
5-27 proceeds derived from the sale of real or [the] personal property
6-1 [or land not required by the district] may be used for any lawful
6-2 purpose.
6-3 SECTION 10. Subchapter H, Chapter 49, Water Code, is amended
6-4 by adding Section 49.234 to read as follows:
6-5 Sec. 49.234. PROHIBITION OF CERTAIN PRIVATE ON-SITE
6-6 FACILITIES. (a) A district or water supply corporation that
6-7 operates a wastewater collection system to serve land within its
6-8 boundaries by rule may prohibit the installation of private on-site
6-9 wastewater holding or treatment facilities on land within the
6-10 district that is not served by the district's or corporation's
6-11 wastewater collection system. A district or corporation that has
6-12 not received funding from Subchapter K, Chapter 17, Water Code, may
6-13 not require a property owner who has already installed an on-site
6-14 wastewater holding or treatment facility to connect to the
6-15 district's or corporation's wastewater collection system.
6-16 (b) A district or water supply corporation that prohibits an
6-17 installation described by Subsection (a) shall agree to pay the
6-18 owner of a particular tract the costs of connecting the tract to
6-19 the district's or corporation's wastewater collection system if the
6-20 distance along a public right-of-way or utility easement from the
6-21 nearest point of the district's or corporation's wastewater
6-22 collection system to the boundary line of the tract requiring
6-23 wastewater collection services is 300 feet or more, subject to
6-24 commission rules regarding reimbursement of those costs.
6-25 SECTION 11. Section 49.271(c), Water Code, is amended to read
6-26 as follows:
6-27 (c) The district may adopt minimum criteria for the
7-1 qualifications of bidders on its construction contracts and for
7-2 sureties issuing payment and performance bonds. For contracts over
7-3 $25,000, the district shall require a person who bids to submit a
7-4 certified or cashier's check on a responsible bank in the state
7-5 equal to at least two percent of the total amount of the bid, or a
7-6 bid bond of at least two percent of the total amount of the bid
7-7 issued by a surety legally authorized to do business in this state,
7-8 as a good faith deposit to ensure execution of the contract. If
7-9 the successful bidder fails or refuses to enter into a proper
7-10 contract with the district, or fails or refuses to furnish the bond
7-11 required by law, the bidder forfeits the deposit. The payment,
7-12 performance, and bid bonding requirements of this subsection do not
7-13 apply to contracts for the purchase of equipment, materials, and
7-14 machinery not otherwise incorporated into a construction project.
7-15 SECTION 12. Sections 49.273(i) and (j), Water Code, are
7-16 amended to read as follows:
7-17 (i) If changes in plans or specifications are necessary
7-18 after the performance of the contract is begun or if it is
7-19 necessary to decrease or increase the quantity of the work to be
7-20 performed or of the materials, equipment, or supplies to be
7-21 furnished, the board may approve change orders making the changes.
7-22 The original contract price may not be increased by more than 10
7-23 percent of the aggregate of those change orders. Additional change
7-24 [Change] orders [to contracts] may be issued only as a result of
7-25 unanticipated conditions encountered during construction, repair,
7-26 or renovation or changes in regulatory criteria or to facilitate
7-27 project coordination with other political entities.
8-1 (j) The board is not required to advertise or seek
8-2 competitive bids for the repair of district facilities if the scope
8-3 or extent of the repair work cannot be readily ascertained or if
8-4 the nature of the repair work does not readily lend itself to
8-5 competitive bidding [by the district's operator if the cost of the
8-6 repair is less than or equal to the advertising requirements of
8-7 this section].
8-8 SECTION 13. Subchapter I, Chapter 49, Water Code, is amended
8-9 by adding Sections 49.279 and 49.280 to read as follows:
8-10 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
8-11 alternative procedures provided by Section 2258.022, Government
8-12 Code:
8-13 (1) a district located wholly or partially within one
8-14 or more municipalities or within the extraterritorial jurisdiction
8-15 of one or more municipalities may establish its prevailing wage
8-16 rate for public works by adopting the prevailing wage rate of:
8-17 (A) one of the municipalities; or
8-18 (B) the county in which the district is located;
8-19 and
8-20 (2) a district not located wholly or partially within
8-21 the extraterritorial jurisdiction of any municipality may establish
8-22 the district's prevailing wage rate by adopting the wage rate of
8-23 the county in which the district is located.
8-24 Sec. 49.280. COMPLIANCE WITH MUNICIPAL REQUIREMENTS. A
8-25 district construction project must comply with any applicable
8-26 municipal platting or zoning requirements within the municipality's
8-27 corporate limits and extraterritorial jurisdiction and with
9-1 applicable requirements of a consent agreement or other agreement
9-2 between the district and the municipality. A district construction
9-3 project is not otherwise subject to any requirements of a
9-4 municipality if the project is located outside the municipality's
9-5 corporate limits.
9-6 SECTION 14. Section 49.304(a), Water Code, is amended to read
9-7 as follows:
9-8 (a) If the board determines that an exclusion hearing should
9-9 be held as provided in Section 49.303(a) or (c) or if a written
9-10 petition requesting an exclusion hearing is filed with the
9-11 secretary of the board as provided in Section 49.303(b) [49.303],
9-12 the board shall give notice of the time and place of a hearing to
9-13 announce its own conclusions relating to land or other property to
9-14 be excluded and to receive petitions for exclusion of land or other
9-15 property.
9-16 SECTION 15. Subchapter J, Chapter 49, Water Code, is amended
9-17 by adding Section 49.315 to read as follows:
9-18 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
9-19 (a) A district may add or exclude land in accordance with this
9-20 subchapter:
9-21 (1) after a district is created by order of the
9-22 commission or another governmental entity or by special Act of the
9-23 legislature; and
9-24 (2) before an election is held as required by Section
9-25 49.102.
9-26 (b) If land is added or excluded as provided by this
9-27 section, the election to confirm the district required by Section
10-1 49.102 shall be to confirm the district as modified.
10-2 SECTION 16. Subchapter D, Chapter 51, Water Code, is amended
10-3 by adding Section 51.131 to read as follows:
10-4 Sec. 51.131. PENALTY FOR VIOLATION OF REGULATION. A person
10-5 commits an offense if the person violates a regulation adopted by a
10-6 district under this chapter or other law. An offense under this
10-7 section is a Class C misdemeanor.
10-8 SECTION 17. Section 51.149, Water Code, is amended by adding
10-9 Subsection (g) to read as follows:
10-10 (g) A district has the right to conduct contract elections
10-11 in the manner set forth in Sections 49.108(a) through (d), without
10-12 the approval required by Section 49.108(e).
10-13 SECTION 18. Section 54.772(1), Water Code, is amended to read
10-14 as follows:
10-15 (1) "Recreational facilities" means parks and
10-16 recreational equipment and facilities, including landscaping,
10-17 parkways, greenbelts, sidewalks, trails, and public rights-of-way
10-18 beautification projects.
10-19 SECTION 19. This Act takes effect September 1, 2001.