1-1 By: Lewis of Orange (Senate Sponsor - Brown) H.B. No. 2817
1-2 (In the Senate - Received from the House April 30, 2001;
1-3 May 1, 2001, read first time and referred to Committee on Natural
1-4 Resources; May 7, 2001, reported favorably by the following vote:
1-5 Yeas 5, Nays 0; May 7, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to certain laws governing water districts and nonprofit
1-9 water or sewer service corporations; creating a criminal offense.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 49.068, Water Code, is amended to read as
1-12 follows:
1-13 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. (a) The
1-14 provisions of this chapter pertaining to bids and the Local
1-15 Government Code notwithstanding, a district may purchase property
1-16 from any governmental entity by negotiated contract without the
1-17 necessity of securing appraisals or advertising for bids.
1-18 (b) A municipality may sell all or a portion of a water or
1-19 sewer system owned by the municipality to a district without the
1-20 approval required by Section 1502.055(a), Government Code, or by
1-21 Section 402.016, Local Government Code, if the district purchasing
1-22 the system is operating under the authority of Section 59, Article
1-23 XVI, Texas Constitution.
1-24 SECTION 2. Section 49.102, Water Code, is amended by
1-25 relettering Subsection (i) as Subsection (j) and by adding a new
1-26 Subsection (i) to read as follows:
1-27 (i) A district, at an election required under Subsection
1-28 (a), may submit to the voters of the district the proposition of
1-29 whether the district should implement a plan authorized by Section
1-30 49.351 for a fire department.
1-31 (j) The provisions of this section shall not be applicable
1-32 to any district exercising the powers of Chapter 375, Local
1-33 Government Code, or any district created by a special Act of the
1-34 legislature that does not require a confirmation election.
1-35 SECTION 3. Section 49.108(e), Water Code, is amended to read
1-36 as follows:
1-37 (e) A district that is required under Section 49.181 to
1-38 obtain approval by the commission of the district's issuance of
1-39 bonds must obtain approval by the executive director before the
1-40 district enters into an obligation under this section to collect
1-41 tax for debt that exceeds three years. This subsection does not
1-42 apply to contract taxes that are levied to pay for a district's
1-43 share of bonds that have been issued by another district and
1-44 approved by the commission or bonds that have been issued by a
1-45 municipality.
1-46 SECTION 4. Section 49.211, Water Code, is amended by adding
1-47 Subsection (e) to read as follows:
1-48 (e) A district that is authorized by law to engage in
1-49 drainage or flood control activities may include among the
1-50 district's land, works, improvements, facilities, plants,
1-51 equipment, and appliances the following areas and projects
1-52 associated with drainage or flood control projects of the district:
1-53 (1) stormwater retention or detention lands and
1-54 projects;
1-55 (2) sedimentation basins or other stormwater quality
1-56 control facilities or structures;
1-57 (3) floodplain and wetlands mitigation lands and
1-58 projects;
1-59 (4) habitat reconstruction or restoration lands and
1-60 projects; and
1-61 (5) any temporary, permanent, or constant- or
1-62 variable-level impoundments of water related to projects described
1-63 by this subsection.
1-64 SECTION 5. Section 49.212(d), Water Code, is amended to read
2-1 as follows:
2-2 (d) Notwithstanding any provision of law to the contrary, a
2-3 district that charges a fee that is an impact fee as described in
2-4 Section 395.001(4), Local Government Code, must comply with Chapter
2-5 395, Local Government Code. A charge or fee by a district for
2-6 construction, installation, or inspection of a tap or connection to
2-7 district water, sanitary sewer, or drainage facilities, including
2-8 all necessary service lines and meters, or for wholesale facilities
2-9 that serve such water, sanitary sewer, or drainage facilities that
2-10 (i) does not exceed three times the actual and reasonable costs to
2-11 the district for such tap or connection, [or] (ii) if made to a
2-12 nontaxable entity for retail or wholesale service, does not exceed
2-13 the actual costs to the district for such work and for all
2-14 facilities that are necessary to provide district services to such
2-15 entity and that are financed or are to be financed in whole or in
2-16 part by tax-supported or revenue bonds of the district, or (iii) if
2-17 made by a district for retail or wholesale service on land that, at
2-18 the time of platting, was not being provided with water or
2-19 wastewater service by the district, shall not be deemed to be an
2-20 impact fee under Chapter 395, Local Government Code. A district
2-21 may pledge revenue of its utility system to pay the principal of or
2-22 interest on bonds issued to construct the capital improvements for
2-23 which the fee was imposed under this subsection, and the revenue
2-24 from the fees is considered to be revenue of the district's utility
2-25 system for purposes of the district's bond covenants.
2-26 SECTION 6. Section 49.215, Water Code, is amended by adding
2-27 Subsection (g) to read as follows:
2-28 (g) If a district contracts with a municipality to provide
2-29 all or part of the water or wastewater services to the
2-30 municipality, the municipality may issue bonds payable from the
2-31 revenue of its water and wastewater system to provide money to make
2-32 payments owed by the municipality to the district under the
2-33 contract.
2-34 SECTION 7. Section 49.218, Water Code, is amended by adding
2-35 Subsection (e) to read as follows:
2-36 (e) A district or water supply corporation may issue bonds,
2-37 notes, or other obligations to acquire property as authorized by
2-38 this section.
2-39 SECTION 8. The heading to Section 49.226, Water Code, is
2-40 amended to read as follows:
2-41 Sec. 49.226. SALE OR EXCHANGE OF REAL [SURPLUS LAND] OR
2-42 PERSONAL PROPERTY.
2-43 SECTION 9. Sections 49.226(b)-(e), Water Code, are amended to
2-44 read as follows:
2-45 (b) Any property dedicated to or acquired by the district
2-46 without expending district funds may be abandoned or released to
2-47 the original grantor, the grantor's heirs, assigns, executors, or
2-48 successors upon terms and conditions deemed necessary or
2-49 advantageous to the district and without receiving compensation for
2-50 such abandonment or release. District property may also be
2-51 abandoned, released, exchanged, or transferred to another district,
2-52 municipality, county, countywide agency, or authority upon terms
2-53 and conditions deemed necessary or advantageous to the district.
2-54 Narrow strips of property resulting from boundary or surveying
2-55 conflicts or similar causes, or from insubstantial encroachments by
2-56 abutting property owners, or property of larger configuration that
2-57 has been subject to encroachments by abutting property owners for
2-58 more than 25 years may be abandoned, released, exchanged, or
2-59 transferred to such abutting owners upon terms and conditions
2-60 deemed necessary or advantageous to the district. Chapter 272,
2-61 Local Government Code, shall not apply to this section
2-62 [subsection].
2-63 (c) Before either a public or a private sale of real
2-64 property [not required by the district], the district shall give
2-65 notice of the intent to sell by publishing notice once a week for
2-66 two consecutive weeks in one or more newspapers with general
2-67 circulation in the district.
2-68 (d) If the district has outstanding bonds secured by a
2-69 pledge of tax revenues, the proceeds of the sale of property [not
3-1 required by the district] shall be applied to retire outstanding
3-2 bonds of the district [when required by the district's applicable
3-3 bond resolutions].
3-4 (e) If the district does not have any outstanding bonds, the
3-5 proceeds derived from the sale of real or [the] personal property
3-6 [or land not required by the district] may be used for any lawful
3-7 purpose.
3-8 SECTION 10. Subchapter H, Chapter 49, Water Code, is amended
3-9 by adding Section 49.234 to read as follows:
3-10 Sec. 49.234. PROHIBITION OF CERTAIN PRIVATE ON-SITE
3-11 FACILITIES. (a) A district or water supply corporation that
3-12 operates a wastewater collection system to serve land within its
3-13 boundaries by rule may prohibit the installation of private on-site
3-14 wastewater holding or treatment facilities on land within the
3-15 district that is not served by the district's or corporation's
3-16 wastewater collection system. A district or corporation that has
3-17 not received funding from Subchapter K, Chapter 17, Water Code, may
3-18 not require a property owner who has already installed an on-site
3-19 wastewater holding or treatment facility to connect to the
3-20 district's or corporation's wastewater collection system.
3-21 (b) A district or water supply corporation that prohibits an
3-22 installation described by Subsection (a) shall agree to pay the
3-23 owner of a particular tract the costs of connecting the tract to
3-24 the district's or corporation's wastewater collection system if the
3-25 distance along a public right-of-way or utility easement from the
3-26 nearest point of the district's or corporation's wastewater
3-27 collection system to the boundary line of the tract requiring
3-28 wastewater collection services is 300 feet or more, subject to
3-29 commission rules regarding reimbursement of those costs.
3-30 SECTION 11. Section 49.271(c), Water Code, is amended to read
3-31 as follows:
3-32 (c) The district may adopt minimum criteria for the
3-33 qualifications of bidders on its construction contracts and for
3-34 sureties issuing payment and performance bonds. For contracts over
3-35 $25,000, the district shall require a person who bids to submit a
3-36 certified or cashier's check on a responsible bank in the state
3-37 equal to at least two percent of the total amount of the bid, or a
3-38 bid bond of at least two percent of the total amount of the bid
3-39 issued by a surety legally authorized to do business in this state,
3-40 as a good faith deposit to ensure execution of the contract. If
3-41 the successful bidder fails or refuses to enter into a proper
3-42 contract with the district, or fails or refuses to furnish the bond
3-43 required by law, the bidder forfeits the deposit. The payment,
3-44 performance, and bid bonding requirements of this subsection do not
3-45 apply to contracts for the purchase of equipment, materials, and
3-46 machinery not otherwise incorporated into a construction project.
3-47 SECTION 12. Sections 49.273(i) and (j), Water Code, are
3-48 amended to read as follows:
3-49 (i) If changes in plans or specifications are necessary
3-50 after the performance of the contract is begun or if it is
3-51 necessary to decrease or increase the quantity of the work to be
3-52 performed or of the materials, equipment, or supplies to be
3-53 furnished, the board may approve change orders making the changes.
3-54 The original contract price may not be increased by more than 10
3-55 percent of the aggregate of those change orders. Additional change
3-56 [Change] orders [to contracts] may be issued only as a result of
3-57 unanticipated conditions encountered during construction, repair,
3-58 or renovation or changes in regulatory criteria or to facilitate
3-59 project coordination with other political entities.
3-60 (j) The board is not required to advertise or seek
3-61 competitive bids for the repair of district facilities if the scope
3-62 or extent of the repair work cannot be readily ascertained or if
3-63 the nature of the repair work does not readily lend itself to
3-64 competitive bidding [by the district's operator if the cost of the
3-65 repair is less than or equal to the advertising requirements of
3-66 this section].
3-67 SECTION 13. Subchapter I, Chapter 49, Water Code, is amended
3-68 by adding Sections 49.279 and 49.280 to read as follows:
3-69 Sec. 49.279. PREVAILING WAGE RATES. In addition to the
4-1 alternative procedures provided by Section 2258.022, Government
4-2 Code:
4-3 (1) a district located wholly or partially within one
4-4 or more municipalities or within the extraterritorial jurisdiction
4-5 of one or more municipalities may establish its prevailing wage
4-6 rate for public works by adopting the prevailing wage rate of:
4-7 (A) one of the municipalities; or
4-8 (B) the county in which the district is located;
4-9 and
4-10 (2) a district not located wholly or partially within
4-11 the extraterritorial jurisdiction of any municipality may establish
4-12 the district's prevailing wage rate by adopting the wage rate of
4-13 the county in which the district is located.
4-14 Sec. 49.280. COMPLIANCE WITH MUNICIPAL REQUIREMENTS. A
4-15 district construction project must comply with any applicable
4-16 municipal platting or zoning requirements within the municipality's
4-17 corporate limits and extraterritorial jurisdiction and with
4-18 applicable requirements of a consent agreement or other agreement
4-19 between the district and the municipality. A district construction
4-20 project is not otherwise subject to any requirements of a
4-21 municipality if the project is located outside the municipality's
4-22 corporate limits.
4-23 SECTION 14. Section 49.304(a), Water Code, is amended to read
4-24 as follows:
4-25 (a) If the board determines that an exclusion hearing should
4-26 be held as provided in Section 49.303(a) or (c) or if a written
4-27 petition requesting an exclusion hearing is filed with the
4-28 secretary of the board as provided in Section 49.303(b) [49.303],
4-29 the board shall give notice of the time and place of a hearing to
4-30 announce its own conclusions relating to land or other property to
4-31 be excluded and to receive petitions for exclusion of land or other
4-32 property.
4-33 SECTION 15. Subchapter J, Chapter 49, Water Code, is amended
4-34 by adding Section 49.315 to read as follows:
4-35 Sec. 49.315. ADDING AND EXCLUDING LAND BEFORE CONFIRMATION.
4-36 (a) A district may add or exclude land in accordance with this
4-37 subchapter:
4-38 (1) after a district is created by order of the
4-39 commission or another governmental entity or by special Act of the
4-40 legislature; and
4-41 (2) before an election is held as required by Section
4-42 49.102.
4-43 (b) If land is added or excluded as provided by this
4-44 section, the election to confirm the district required by Section
4-45 49.102 shall be to confirm the district as modified.
4-46 SECTION 16. Subchapter D, Chapter 51, Water Code, is amended
4-47 by adding Section 51.131 to read as follows:
4-48 Sec. 51.131. PENALTY FOR VIOLATION OF REGULATION. A person
4-49 commits an offense if the person violates a regulation adopted by a
4-50 district under this chapter or other law. An offense under this
4-51 section is a Class C misdemeanor.
4-52 SECTION 17. Section 51.149, Water Code, is amended by adding
4-53 Subsection (g) to read as follows:
4-54 (g) A district has the right to conduct contract elections
4-55 in the manner set forth in Sections 49.108(a) through (d), without
4-56 the approval required by Section 49.108(e).
4-57 SECTION 18. Section 54.772(1), Water Code, is amended to read
4-58 as follows:
4-59 (1) "Recreational facilities" means parks and
4-60 recreational equipment and facilities, including landscaping,
4-61 parkways, greenbelts, sidewalks, trails, and public rights-of-way
4-62 beautification projects.
4-63 SECTION 19. This Act takes effect September 1, 2001.
4-64 * * * * *