By Lewis of Orange H.B. No. 2817
77R7466 SGA-F
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 49.102, Water Code, is amended by
1-6 relettering Subsection (i) as Subsection (j) and by adding a new
1-7 Subsection (i) to read as follows:
1-8 (i) A district, at an election required under Subsection
1-9 (a), may submit to the voters of the district the proposition of
1-10 whether the district should implement a plan authorized by Section
1-11 49.351 for a fire department.
1-12 (j) The provisions of this section shall not be applicable
1-13 to any district exercising the powers of Chapter 375, Local
1-14 Government Code, or any district created by a special Act of the
1-15 legislature that does not require a confirmation election.
1-16 SECTION 2. Section 49.211, Water Code, is amended by adding
1-17 Subsection (e) to read as follows:
1-18 (e) A district that is authorized by law to engage in
1-19 drainage or flood control activities may include among the
1-20 district's land, works, improvements, facilities, plants,
1-21 equipment, and appliances the following areas and projects
1-22 associated with drainage or flood control projects of the district:
1-23 (1) stormwater retention or detention lands and
1-24 projects;
2-1 (2) sedimentation basins or other stormwater quality
2-2 control facilities or structures;
2-3 (3) floodplain and wetlands mitigation lands and
2-4 projects;
2-5 (4) habitat reconstruction or restoration lands and
2-6 projects; and
2-7 (5) any temporary, permanent, or constant- or
2-8 variable-level impoundments of water related to projects in this
2-9 subsection.
2-10 SECTION 3. The heading to Section 49.215, Water Code, is
2-11 amended to read as follows:
2-12 Sec. 49.215. SERVICE TO AREAS OUTSIDE A [THE] DISTRICT OR
2-13 WATER SUPPLY CORPORATION.
2-14 SECTION 4. Section 49.215, Water Code, is amended by amending
2-15 Subsections (a), (e), and (f) and by adding Subsection (g) to read
2-16 as follows:
2-17 (a) A district or water supply corporation may purchase,
2-18 construct, acquire, own, operate, repair, improve, or extend all
2-19 works, improvements, facilities, plants, equipment, and appliances
2-20 necessary to provide any services or facilities authorized to be
2-21 provided by the district or corporation to areas contiguous to or
2-22 in the vicinity of the district or corporation provided the
2-23 district or corporation does not duplicate a service or facility of
2-24 another public entity. A district or corporation providing potable
2-25 water and sewer utility services to household users shall not
2-26 provide services or facilities to serve areas outside the district
2-27 or corporation that are also within the corporate limits of a city
3-1 without securing a resolution or ordinance of the city granting
3-2 consent for the district or corporation to serve the area within
3-3 the city.
3-4 (e) A district or corporation is authorized to establish,
3-5 maintain, revise, charge, and collect the rates, fees, rentals,
3-6 tolls, or other charges for the use, services, and facilities that
3-7 provide service to areas outside the district or corporation that
3-8 are considered necessary and may be higher than those charged for
3-9 comparable service to users within the district or corporation.
3-10 (f) The rates, fees, rentals, tolls, or other charges shall
3-11 be at least sufficient to meet the expense of operating and
3-12 maintaining the services and facilities for a water and sanitary
3-13 sewer system serving areas outside the district or corporation and
3-14 to pay the principal of and interest and redemption price on bonds
3-15 issued to purchase, construct, acquire, own, operate, repair,
3-16 improve, or extend the services or facilities.
3-17 (g) Notwithstanding any term of a water supply contract
3-18 between a water supply corporation and a political subdivision to
3-19 the contrary, the corporation may, on approval by the commission of
3-20 a service area amendment to serve an area, use the water sold by
3-21 the political subdivision under a contract to provide service to
3-22 the service area of the corporation provided the service does not
3-23 affect a term of the contract relating to the amount of water to be
3-24 supplied. A term of the contract that purports to authorize a
3-25 political subdivision to cancel a contract if the water sold to the
3-26 corporation is used outside the area agreed to by the political
3-27 subdivision is not effective to the extent that the water is used
4-1 by the corporation within an area lawfully served by the
4-2 corporation under Chapter 13.
4-3 SECTION 5. Section 49.218, Water Code, is amended by adding
4-4 Subsection (e) to read as follows:
4-5 (e) A district or water supply corporation may issue bonds,
4-6 notes, or other obligations to acquire property as authorized by
4-7 this section.
4-8 SECTION 6. The heading to Section 49.226, Water Code, is
4-9 amended to read as follows:
4-10 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
4-11 PERSONAL PROPERTY.
4-12 SECTION 7. Sections 49.226(b)-(e), Water Code, are amended to
4-13 read as follows:
4-14 (b) Any property dedicated to or acquired by the district
4-15 without expending district funds may be abandoned or released to
4-16 the original grantor, the grantor's heirs, assigns, executors, or
4-17 successors upon terms and conditions deemed necessary or
4-18 advantageous to the district and without receiving compensation for
4-19 such abandonment or release. District property may also be
4-20 abandoned, released, exchanged, or transferred to another district,
4-21 municipality, county, countywide agency, or authority upon terms
4-22 and conditions deemed necessary or advantageous to the district.
4-23 Narrow strips of property resulting from boundary or surveying
4-24 conflicts or similar causes, or from insubstantial encroachments by
4-25 abutting property owners, or property of larger configuration that
4-26 has been subject to encroachments by abutting property owners for
4-27 more than 25 years may be abandoned, released, exchanged, or
5-1 transferred to such abutting owners upon terms and conditions
5-2 deemed necessary or advantageous to the district. Chapter 272,
5-3 Local Government Code, shall not apply to this section
5-4 [subsection].
5-5 (c) Before either a public or a private sale of real
5-6 property [not required by the district], the district shall give
5-7 notice of the intent to sell by publishing notice once a week for
5-8 two consecutive weeks in one or more newspapers with general
5-9 circulation in the district.
5-10 (d) If the district has outstanding bonds secured by a
5-11 pledge of tax revenues, the proceeds of the sale of property [not
5-12 required by the district] shall be applied to retire outstanding
5-13 bonds of the district [when required by the district's applicable
5-14 bond resolutions].
5-15 (e) If the district does not have any outstanding bonds, the
5-16 proceeds derived from the sale of real or [the] personal property
5-17 [or land not required by the district] may be used for any lawful
5-18 purpose.
5-19 SECTION 8. Subchapter H, Chapter 49, Water Code, is amended
5-20 by adding Section 49.234 to read as follows:
5-21 Sec. 49.234. PROHIBITION OF CERTAIN PRIVATE ON-SITE
5-22 FACILITIES. (a) A district that operates a wastewater collection
5-23 system to serve land within its boundaries by rule may prohibit the
5-24 installation of private on-site wastewater holding or treatment
5-25 facilities on land within the district that is not served by the
5-26 district's wastewater collection system. A district may not
5-27 require a property owner who has already installed an on-site
6-1 wastewater holding or treatment facility to connect to the
6-2 district's wastewater collection system.
6-3 (b) A district that prohibits an installation described by
6-4 Subsection (a) shall agree to pay the owner of a particular tract
6-5 the costs of connecting the tract to the district's wastewater
6-6 collection system if the distance along a public right-of-way or
6-7 utility easement from the nearest point of the district's
6-8 wastewater collection system to the boundary line of the tract
6-9 requiring wastewater collection services is 300 feet or more,
6-10 subject to commission rules regarding reimbursement of those costs.
6-11 SECTION 9. Section 49.271(c), Water Code, is amended to read
6-12 as follows:
6-13 (c) The district may adopt minimum criteria for the
6-14 qualifications of bidders on its construction contracts and for
6-15 sureties issuing payment and performance bonds. For contracts over
6-16 $25,000, the district shall require a person who bids to submit a
6-17 certified or cashier's check on a responsible bank in the state
6-18 equal to at least two percent of the total amount of the bid, or a
6-19 bid bond of at least two percent of the total amount of the bid
6-20 issued by a surety legally authorized to do business in this state,
6-21 as a good faith deposit to ensure execution of the contract. If
6-22 the successful bidder fails or refuses to enter into a proper
6-23 contract with the district, or fails or refuses to furnish the bond
6-24 required by law, the bidder forfeits the deposit. The payment,
6-25 performance, and bid bonding requirements of this subsection do not
6-26 apply to contracts for the purchase of equipment, materials, and
6-27 machinery not otherwise incorporated into a construction project.
7-1 SECTION 10. Sections 49.273(i) and (j), Water Code, are
7-2 amended to read as follows:
7-3 (i) If changes in plans or specifications are necessary
7-4 after the performance of the contract is begun or if it is
7-5 necessary to decrease or increase the quantity of the work to be
7-6 performed or of the materials, equipment, or supplies to be
7-7 furnished, the board may approve change orders making the changes.
7-8 The original contract price may not be increased by more than 10
7-9 percent of the aggregate of those change orders. Additional change
7-10 [Change] orders [to contracts] may be issued only as a result of
7-11 unanticipated conditions encountered during construction, repair,
7-12 or renovation or changes in regulatory criteria or to facilitate
7-13 project coordination with other political entities.
7-14 (j) The board is not required to advertise or seek
7-15 competitive bids for the repair of district facilities if the scope
7-16 or extent of the repair work cannot be readily ascertained or if
7-17 the nature of the repair work does not readily lend itself to
7-18 competitive bidding [by the district's operator if the cost of the
7-19 repair is less than or equal to the advertising requirements of
7-20 this section].
7-21 SECTION 11. Subchapter I, Chapter 49, Water Code, is amended
7-22 by adding Section 49.279 to read as follows:
7-23 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
7-24 alternative procedures provided by Section 2258.022, Government
7-25 Code:
7-26 (1) a district located wholly or partially within one
7-27 or more municipalities or within the extraterritorial jurisdiction
8-1 of one or more municipalities may establish its prevailing wage
8-2 rate for public works by adopting the prevailing wage rate of:
8-3 (A) one of the municipalities; or
8-4 (B) the county in which the district is located;
8-5 and
8-6 (2) a district not located wholly or partially within
8-7 the extraterritorial jurisdiction of any municipality may establish
8-8 the district's prevailing wage rate by adopting the wage rate of
8-9 the county in which the district is located.
8-10 SECTION 12. Section 49.304(a), Water Code, is amended to read
8-11 as follows:
8-12 (a) If the board determines that an exclusion hearing should
8-13 be held as provided in Section 49.303(a) or (c) or if a written
8-14 petition requesting an exclusion hearing is filed with the
8-15 secretary of the board as provided in Section 49.303(b) [49.303],
8-16 the board shall give notice of the time and place of a hearing to
8-17 announce its own conclusions relating to land or other property to
8-18 be excluded and to receive petitions for exclusion of land or other
8-19 property.
8-20 SECTION 13. Subchapter J, Chapter 49, Water Code, is amended
8-21 by adding Section 49.315 to read as follows:
8-22 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
8-23 (a) A district may add or exclude land in accordance with this
8-24 subchapter:
8-25 (1) after a district is created by order of the
8-26 commission or another governmental entity or by special Act of the
8-27 legislature; and
9-1 (2) before an election is held as required by Section
9-2 49.102.
9-3 (b) If land is added or excluded as provided by this
9-4 section, the election to confirm the district required by Section
9-5 49.102 shall be to confirm the district as modified.
9-6 SECTION 14. Section 49.327, Water Code, is amended to read as
9-7 follows:
9-8 Sec. 49.327. ASSETS ESCHEAT TO STATE. (a) Upon the
9-9 dissolution of a district by the commission, all assets of the
9-10 district shall escheat to the State of Texas. The assets shall be
9-11 administered by the comptroller and shall be disposed of in the
9-12 manner provided by Chapter 74, Property Code.
9-13 (b) Title 6, Property Code, does not apply to any personal
9-14 property held by a district that has not been dissolved by order of
9-15 the commission.
9-16 SECTION 15. Section 51.149, Water Code, is amended by adding
9-17 Subsections (a), (b), (c), and (g) to read as follows:
9-18 (a) If approved by a majority of the members of the board, a
9-19 district may enter into a contract with any person for the joint
9-20 construction, ownership, or operation of any property, works,
9-21 improvements, facilities, plants, equipment, or appliances used to
9-22 accomplish any purpose or function of the district and may purchase
9-23 an interest in any project used for any purpose or function of the
9-24 district.
9-25 (b) If approved by a majority of the members of the board, a
9-26 district may enter into a contract with any person for the
9-27 performance of any purpose or function of the district.
10-1 (c) A joint contract entered into by a district under this
10-2 section and amendments to that contract must be in writing and
10-3 signed by each party or by an authorized representative of each
10-4 party.
10-5 (g) A district has the right to conduct contract elections
10-6 in the manner provided by Sections 49.108(a)-(d), without the
10-7 approval required by Section 49.108(e), if:
10-8 (1) all land that would be subject to the contract
10-9 election was in the boundaries of a district covered by this
10-10 section that was a party to an agreement with a municipality before
10-11 September 1, 1997, calling for the issuance of district bonds for
10-12 road or bridge improvements; and
10-13 (2) the contract is approved by the municipality that
10-14 is a party to the agreement.
10-15 SECTION 16. Subchapter D, Chapter 51, Water Code, is amended
10-16 by adding Section 51.131 to read as follows:
10-17 Sec. 51.131. PENALTY FOR VIOLATION OF REGULATION. A person
10-18 commits an offense if the person violates a regulation adopted by a
10-19 district under this chapter or other law. An offense under this
10-20 section is a Class C misdemeanor.
10-21 SECTION 17. This Act takes effect September 1, 2001.